Indian equity benchmarks, the Nifty 50 and the Sensex, staged a powerful comeback this week, decisively ending a two-week period of declines. The markets closed with substantial gains, fueled by a combination of positive domestic and global cues that reignited investor confidence.
Market Performance at a Glance
The Nifty 50 index surged by 417 points, or 1.64%, to settle at 25,910. Meanwhile, the Sensex climbed by 1,346.50 points, or 1.62%, closing the week at 84,562.78. This robust performance marks a significant reversal from the previous bearish trend, suggesting a renewed optimism among market participants.
Key Drivers Behind the Rally
Analysts point to three primary factors that propelled the markets upward. Firstly, foreign investors have displayed an enhanced risk appetite, turning into selective buyers of Indian equities after a period of caution.
Secondly, substantial progress in the U.S.-India trade deal has bolstered market sentiment. Investors are anticipating improved market access, a reduction in trade barriers, and a positive impact on key export-oriented sectors such as information technology (IT), pharmaceuticals, and specialty chemicals.
Thirdly, the clear victory of the BJP-led NDA in the Bihar assembly elections has been a major domestic trigger. This outcome has heightened expectations of continued political stability, policy continuity, and sustained economic reform efforts, all of which are viewed as highly favorable for long-term equity investments.
Expert Analysis and Market Outlook
Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty 50 witnessed an unexpected rally towards the session's end, buoyed by the Bihar election results. He highlighted that the index found solid support near the 50-day Exponential Moving Average (EMA) on the hourly chart before staging a strong intraday rebound. De stated that the current market sentiment is robust, with a potential for the index to advance towards 26,200/26,350 in the near term.
"While significant resistance exists around the 26,000 mark, the strength of the late-session recovery suggests potential upward movement in the coming days. Support on the lower end is firmly established at 25,700, and as long as the index holds above this level, the bulls are likely to remain in control," De explained.
Vinod Nair, Head of Research at Geojit Investments, added that the market's positive close was supported by gains in banking and FMCG stocks, with the NDA's win further enhancing the mood. He mentioned that a positive shift in Q2 FY26 corporate results and manageable inflation data are improving the earnings outlook for the second half of the fiscal year.
"Investors are now looking for additional catalysts for a major breakout from current levels. The upcoming RBI policy meeting and further developments on the US trade deal are expected to maintain an optimistic market sentiment," Nair said.
Stocks to Watch: Expert Recommendations
Market experts have recommended eight stocks for intraday trading based on technical analysis:
Sumeet Bagadia, Executive Director at Choice Broking, recommended:
City Union Bank Ltd: Buy at ₹171 with a stop loss at ₹162 and a target of ₹190. The stock is showing a strong bullish momentum and is trading near its all-time high.
Garden Reach Shipbuilders & Engineers Ltd: Buy at ₹2,897 with a stop loss at ₹2,795 and a target of ₹3,100. The stock has broken out from a sideways consolidation pattern with rising volumes.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended:
Steel Authority of India Ltd (SAIL): Buy at ₹142 with a stop loss at ₹135 and a target of ₹150. The stock shows a strong bullish pattern with solid support.
Housing & Urban Development Corporation Ltd (HUDCO): Buy at ₹229 with a stop loss at ₹223 and a target of ₹240. The stock exhibits a continued bullish pattern.
ICICI Bank Ltd: Buy at ₹1,373 with a stop loss at ₹1,350 and a target of ₹1,400. The technical setup suggests a potential upward move.
Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, recommended:
Ather Energy Ltd: Buy at ₹649.60 with a stop loss of ₹634 and a target of ₹690. The stock has consolidated and shows signs of a fresh upward move.
Prism Johnson Ltd: Buy at ₹145.45 with a stop loss of ₹142 and a target of ₹155. The stock has improved its bias and moved above a key moving average.
Skipper Ltd: Buy at ₹500 with a stop loss of ₹488 and a target of ₹530. A strong bullish candle formation indicates further gains.
Disclaimer: The views and recommendations are those of individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
