According to stock market experts, 30-stock BSE Sensex is skyrocketing today due to strong global cues. They said that global sentiments turned positive after US stock market snapped its two days losing spree on Thursday after Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank could be in a position to pause rate hikes sometime this summer. They said that Sensex is bouncing back following positive global cues as Asian stocks are also surging today following strong Wall Street cues. They said that Sensex may go up to 60,900 levels if it manages to close above 59,500 levels.

On reasons that fueled sentiments of global markets today, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “US stocks advanced higher on Thursday, ending its two days of losses and closed Thursday’s session higher after Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank could be in a position to pause rate hikes sometime this summer.”

Speaking on why Sensex today surged to the tune of 1.20 per cent, Ravi Singhal, CEO at GCL Broking said, “Sensex today surged to the tune of 1.20 per cent within an hour of stock market’s opening as sentiments have turned positive after US Fed officials comments to pause interest rate hike. As Sensex is in oversold condition after sell off pressure in last 10 sessions, this positive trigger has worked in favour of Sensex, Nifty and other key benchmark indices of Indian stock market. “

On outlook for Sensex today, Sumeet Bagadia, Executive Director at Choice Broking said, “Sensex is bouncing back from its lows and the 30-stock index may become highly bullish if it manages to close above 59,500 levels. If Sensex closes above 59,500 levels on Friday, the we can expect this BSE index to touch 60,100 and 60,900 levels in near term. However, on the lower side, Sensex has strong support placed at 58,800 to 58,700 levels. Breaching this support should be assumed as more downside move in the index.”

TCS, SBI stocks in focus

Asked about the segments that may continue to fuel Sensex, Nifty and other benchmark indices, Ravi Singhal of GCL Broking said, “IT and banking sector is expected to outperform other sectors and one should try and add stocks from these sectors in expected rally on Dalal Street.” He said that one can buy shares of TCS and State Bank of India (SBI) for big upside in medium to long term time horizon.

NSE Nifty and Bank Nifty too opened higher and went on to extend their morning gains by the end of an hour of trade on Friday session. Nifty today opened higher and went on to hit intraday high of 17,534 levels, more than 200 points higher from its Thursday close of 17,321 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.