Indian Stock Market Scales New Heights
In a landmark event for the Indian financial markets, the benchmark Nifty 50 index surged to an all-time high on Thursday, breaking a 14-month period of waiting. This historic rally was primarily fueled by widespread optimism surrounding a robust recovery in corporate earnings, attractive stock valuations, and a resilient economy supported by stable fiscal and monetary policies.
Record-Breaking Numbers and Market Momentum
During early trading, the Nifty 50 climbed by 0.32% to reach an unprecedented peak of 26,289.80 points. This move successfully surpassed its previous record high of 26,277.35, which was established back in September 2024. Not to be left behind, the Sensex also posted strong gains, rising by 0.35% and hovering tantalizingly close to its own record levels.
Market experts point to a significant turnaround in India's corporate health. Analysts have become increasingly bullish on profit growth, anticipating a broad-based rebound in consumption. This positive sentiment is underpinned by a favourable mix of low inflation, recent tax cuts, and a decline in borrowing costs, creating a potent environment for economic expansion.
With this surge, the Nifty 50 has now joined the ranks of most other major global stock indices that have been scaling new peaks.
Expert Technical Outlook and Trading Strategy
Osho Krishan, Sr. Analyst of Technical & Derivatives at Angel One, provided a detailed technical perspective. He noted that despite a positive cue from Gift Nifty, the benchmark index opened lower. However, buying activity emerged immediately from the opening bell, forming a bullish 'Open Low' setup. The session saw prices climb steadily, culminating in a powerful gain of 1.24%, with the index closing just above the 26,200 mark.
Krishan emphasized that this move not only reversed the declines of the previous three sessions but also engulfed the entire corrective phase, marking the highest close of the year. He stated that the all-time high is now within striking distance and seems like a near-term formality. The index's bounce from the 20-day Exponential Moving Average (20DEMA) has formed a higher bottom, reinforcing the bullish momentum.
Given the broad-based strength, Krishan advises traders to maintain a 'buy-on-dips' approach and avoid contra short trades. He identifies 26,100–26,000 as the immediate support zone, with a stronger base at 25,850. On the upside, a break above 26,300 could open the path towards 26,500.
He also highlighted exceptional action in the Midcap segment, with the Nifty Midcap Select Index resuming its uptrend and showing strong relative strength, suggesting it may be a key driver of outperformance.
Stocks to Watch: Expert Recommendations
Osho Krishan of Angel One recommended two stocks for investors to consider on Thursday:
Coforge Ltd: The stock is in a consistent uptrend, trading above all significant moving averages. It is emerging from a consolidation phase and appears poised to advance towards its 52-week highs. Technical indicators align with a bullish structure. The recommendation is to BUY around ₹1,850-1,840 with a Stop Loss of ₹1,740 and a Target of ₹1,980-2,000.
Glenmark Pharmaceuticals Ltd: After a notable decline, the stock is showing signs of stability. A positive divergence on the RSI, a consolidation breakout, and a bullish MACD crossover suggest a potential counter-trend move. The recommendation is to BUY around ₹1,900 with a Stop Loss of ₹1,820 and a Target of ₹2,010-2,020.
Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. Investors are advised to consult certified experts before making any investment decision.
