Sensex, Nifty likely to open higher amid positive global cues

Indian benchmark indices are likely to open on a positive note today as SGX Nifty quoted at 16,856 at 8:40 am.

Singapore Nifty (SGX Nifty) is the Indian Nifty index that is traded in the Singapore Stock Exchange and is considered to be the first indication of the opening of the Indian market.

Benchmark indices rebounded on Tuesday after a two-day selloff, tracking gains in index majors Reliance Industries, ICICI Bank and HDFC Bank amid a positive trend in other Asian markets.

Sensex closed 497 points higher at 56,319 and Nifty advanced 156.65 points to 16,770.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "Markets witnessed a sharp pullback rally thanks to a recovery in key global indices. Despite the reversal from the recent bout of correction, nervousness in the market could continue, as the Nifty has formed a Doji kind of candlestick formation which indicates indecisiveness between bulls and bears."

"On intraday charts, it has also completed one leg of pullback rally. We are of the view that after a modest pullback rally, the market may consolidate within the range of 16600 to 16950. The texture of the chart suggests 16700 and 16600 would be key support levels, while 16900-17000 would act as an immediate hurdle for the market. However, below 16600, the uptrend would be vulnerable," he added.

Foreign institutional investors (FIIs) sold shares worth Rs 1,209.82 crore on December 21, and domestic institutional investors (DIIs) bought shares worth Rs 1,404.89 crore, as per provisional data available on NSE.