Indian equities opened higher on Wednesday on positive global cues, tracking gains in US tech stocks, even as hawkish remarks from Fed officials pushed global yields higher while the latest US CPI print reinforced expectations of a December rate hike.
The rupee's recent appreciation, supported by sustained foreign inflows and softer crude prices, together with expectations of higher-for-longer global rates, weighed on IT stocks and caused large caps to gradually give up their early gains.
However, small caps helped the broader market to outperform, while rotation out of defensive pharma stocks into autos and banks suggested risk appetite was returning. Whether this renewed risk appetite holds will depend on upcoming India's October inflation and US PPI data, which together should shape the outlook for domestic prices and global interest rates.
Astra Microwave initiated a decisive multi-week breakout on the daily chart, currently trading at 1,727 after establishing a strong accumulation floor across the 1,500–1,540 base shelf. The impulsive upward move drove price cleanly above its short- and intermediate-term dynamic moving average cluster, reclaiming the 20, 50, and 100 EMAs to turn them into solid underlying support.Sachin Gupta, VP – Technical Research at Choice Equity Broking
Neogen executed a strong bullish momentum thrust to retest its swing peak on the daily chart, currently trading at 2,770 after completing an aggressive multi-session recovery from the 2,150–2,200 base shelf. The impulsive advance preserves an intact sequence of rising dynamic moving averages, with price surging well clear of the dynamic support cluster to challenge all-time high resistance near 2,810.Sachin Gupta, VP – Technical Research at Choice Equity Broking