Indian Stock Markets Continue Winning Streak, Eye New Highs
The Indian stock market demonstrated remarkable resilience, with benchmark indices securing gains for the fourth consecutive session on Friday. The rally was fueled by a combination of positive triggers, including encouraging Bihar election outcomes, a turnaround in corporate earnings, and the resolution of the US government shutdown.
Market Performance and Weekly Gains
The BSE Sensex concluded the day higher by 84.11 points, or 0.10%, settling at 84,563. Meanwhile, the NSE Nifty 50 advanced by 31 points, or 0.12%, to close at 25,910. Over the course of the week, both indices posted impressive gains of approximately 1.6%.
The bullish sentiment was broad-based. All 16 major sectoral indices recorded weekly advances. Furthermore, the small-cap and mid-cap indices climbed by about 1% and 1.5% respectively, indicating widespread investor confidence across market capitalizations.
Expert Outlook: Nifty Poised for 26,400?
Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, stated that the bulls have firmly regained control of Dalal Street. He expressed confidence that the Nifty 50 is set to surpass the 26,000 mark in the upcoming week.
Kothari highlighted that the index successfully defended the crucial support level near 25,300, which also aligned with the 50% Fibonacci retracement of its previous rally. From this base, the Nifty staged a powerful rebound, heading towards 26,000. He maintains a technically bullish stance and even suggests that traders consider accumulating index ETFs around the 25,300 level.
The analyst believes the index is now approaching the psychological barrier of 26,000 and a key hurdle at 26,277. He opined that the current price action indicates a high likelihood of the index surpassing both these levels soon. A sustained move above 26,277 could propel the Nifty into uncharted territory, potentially setting a new all-time high near the 26,400 zone.
However, Kothari also issued a note of caution, warning that markets can experience a shallow pullback after a sharp upward movement. In such a scenario, the 25,700 level would act as a critical support. A decisive break below this level might trigger short-term profit-booking.
Nifty Bank and Stock Recommendations
The Nifty Bank index also delivered a strong performance, gaining over 1% for the week. According to Kothari, the index is on the verge of a fresh breakout. A decisive move above 58,600 could confirm a bullish flag pattern, potentially initiating a rally towards the 60,000 mark. On the downside, immediate support is placed at 58,000, with a stronger zone near 57,000.
For investors looking for specific opportunities, Mehul Kothari recommended these three stocks to consider buying on Monday:
- Samvardhana Motherson: Buy near ₹110 | Target ₹118 | Stop loss ₹105
- Castrol India: Buy near ₹192 | Target ₹296 | Stop loss ₹184
- CESC: Buy near ₹175 | Target ₹181 | Stop loss ₹169
Disclaimer: This information is intended for educational purposes. The views and recommendations are those of the analyst and not of Mint. Investors are strongly advised to consult certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances may vary.
