Benchmark indices opened with a strong gap-up on Monday and maintained their positive momentum throughout the session, as optimism over progress in US-Iran peace talks triggered a sharp correction in crude oil prices below $96 per barrel and supported a marginal recovery in the Indian Rupee.
At close, the Sensex was up 1073.61 points or 1.42 per cent at 76,488.96, and the Nifty was up 312.40 points or 1.32 per cent at 24,031.70.
On the sectoral front most of the sector traded in positive and contributed with major gain noted from Nifty PSU and PVT banks, Auto, Realty major sector closed positive while the only laggard is noted in Nifty FMCG sector, as per Bajaj Broking Market Commentary.
Chandrakant Agrawal, Cofounder, AppSquadz, said despite recent global market uncertainty and FII outflows of over Rs 2 lakh crore, India remains one of the fastest-growing major economies, with growth expected to stay close to 7 per cent. India’s IT sector has also stayed strong, driven by rising global demand for AI, cloud and cybersecurity services.
“While markets may experience short-term fluctuations, the country’s long-term fundamentals, digital growth and innovation story remain solid. This phase should not only be viewed as a challenge; it also presents an opportunity to invest in India’s fast-growing technology and digital ecosystem," he said.
In terms of Nifty outlook, the index in the daily chart formed a strong bullish candlestick pattern with a higher high and higher low and a bullish gap below its base (23,835-23,922). The index in the process closed above the 20- & 50-days EMA highlighting positive bias.
The index has generated a breakout above the last 9 sessions broad trading range of 23,200-23,900 signalling strength. Index sustaining above the Monday’s gap area will keep the bias positive and will open further upside towards 24,200 and 24,600 in the coming sessions.
Index has immediate support at 23,600 levels while major support is placed at 23,200-23,000, being the confluence of the lower band of the 8th April bullish gap area and the 61.8 per cent retracement of the previous pullback (22,182-24,601). The daily stochastic is in uptrend thus supports the positive bias in the index.
