On the day of monthly expiry, the market opened on a positive note and maintained its upward momentum through most of the session.
Intraday dips were quickly bought into, helping the Nifty end near the day’s high.
The midcap and smallcap indices continued their upward journey for the fifth day in the row. Nifty Midcap 100 gained 0.59% while Nifty Smallcap 100 rose 0.42%.
Amongst the sectoral indices, Nifty Metal, Oil & Gas and Financial services gained the most while Nifty Media, Realty and IT are the three sector ended in the red.
On the global front, the dollar index slipped below the 97-mark for the first time since March 2022, hitting a three-year low. This boosted commodity-linked sectors, with Nifty Metal rallying 2.3% and Oil & Gas gaining 1.8% as Brent crude dropped to $66 per bbl.
On the domestic front, a strong start to the monsoon supported sentiments, with cumulative rainfall now 4% above the long-period average, which bodes well for agri, rural and consumer related sector. Defence stocks are likely to be in focus, as India’s strengthening manufacturing ties with Europe, backed by NATO’s rising defence spend, present a significant export opportunity. The government has set an ambitious target of ₹50,000 crore in defence exports by 2029.
Overall, Siddhartha Khemka of Motilal Oswal expects the market momentum to continue with Nifty likely to move upwards towards its previous life highs driven by healthy domestic macros and supportive global environment.
Having almost reached our upside target of 25,600 on Thursday, the Nifty could now advance towards the next upper range of 25,800–26,000 by next week, said Nagaraj Shetti of HDFC Securities. Immediate support is placed at the 25,400 level.
Shetti said that a long bull candle was formed on the daily chart on Thursday, indicating a decisive breakout from the past couple of months’ high-low range of 24,500–25,200. The index also closed higher. Technically, such sharp breakouts from consolidation phases often trigger strong upside momentum in the underlying. Hence, a sharp follow-through rally may be expected in the short term.
LKP Securities’ Rupak De said the Nifty has made a decisive move above its recent consolidation on the daily chart, reflecting growing optimism among traders and investors. “Now that the index has broken out of the consolidation zone, we continue to maintain our bullish view. With no major resistance until the 25,700-25,750 zone, we expect the rally to extend by another 150-200 points on the upside. On the downside, support is seen around 25,300-25,350,” he added.
