The benchmark Nifty 50 index posted another strong gain of 273 points. After opening with an upside gap of around 100 points, the index surged further during the early to mid-session before settling into a range-bound movement towards the close.
The market recorded broad-based gains, with the Nifty reclaiming the 24,000 mark and the Nifty Bank crossing 55,000. Bank-led gains continued, pushing the Nifty Bank to a new record high.
The Nifty gained 273 points or 1.15%, to close at 24,125. In the last eight trading sessions, the index has risen more than 2,400 points from the recent swing low of 21,743.
Broader market indices continued their northward journey for the fifth day in a row. The Nifty Mid-cap 100 surged 2.5%, while the Nifty Small-cap 100 gained 2.2%. Midcap banks also saw buying, with most stocks closing with a gain of 4-5%.
Monday’s rally was driven by strong buying in heavyweight stocks following solid earnings reports, positive management commentary from key banks, and sustained foreign fund inflows.
Quarterly results from HDFC Bank and ICICI Bank, which were higher than estimates, also contributed to the gains on the Nifty Bank. Both the index heavyweights were also trading at all-time high levels.
Looking ahead to Tuesday, market attention will shift to earnings reports from HCL Technologies, Mahindra & Mahindra Financial Services, Havells India, AU Small Finance Bank, Tata Communications, Waaree Energies, Cyient DLM amongst others.
Both foreign investors and domestic institutional investors remained net buyers in the cash market on Monday.
The US stock market, meanwhile, fell again on Monday as President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, raising questions about the central bank’s independence, while traders received little signs of progress on global trade talks.
The Dow Jones Industrial Average traded 925 points lower, or 2.4%. The S&P 500 fell 2.4%, and the Nasdaq Composite declined 2.7%
Nagaraj Shetti of HDFC Securities believes with a sustainable move above 24,200, the Nifty could advance towards the next resistance of 24,550 levels in the near term. Immediate support is placed at 23,900 levels.
LKP Securities’ Rupak De said that the sentiment is expected to remain positive as long as the index sustains above the critical moving average. Moreover, the Nifty has moved above the critical resistance of 24,100; therefore, it looks well on track to reach the 24,450–24,500 zone in the short term. On the lower end, support is placed at 23,850.
On the Nifty Bank index, Om Mehra of Samco Securities said that the uptrend can be considered intact as long as the index holds above 54,250 or until a clear reversal candlestick pattern emerges near the top. This could mark a phase of consolidation or a minor pullback before the next leg of the rally unfolds.
Here are the stocks to watch ahead of Tuesday’s trading session:
– HUL completes acquisition of 90.5% stake in Uprising Science for ₹2,706.44 crore.
– Brigade Enterprises signs joint development agreement (JDA) development project in Malur, East Bengaluru spanning approximately 20 acres. Gross development value of the project is around ₹175 crore.
– Tata Power arm ‘Tata Power Renewable Energy’ signs Power Purchase Agreement (PPA) with Tata Motors to set up 131 MW wind-solar hybrid project.
