Indian Stock Markets Scale Unprecedented Peaks
Indian equity benchmarks, the Sensex and Nifty 50, achieved historic milestones during early trading on Thursday, propelled by favorable global cues and growing anticipation of a monetary policy easing by the US Federal Reserve. This rally underscores a robust bullish sentiment among investors, further amplified by consistent foreign capital inflows.
Benchmarks Shatter Previous Records
Maintaining its upward trajectory from the previous session, the Sensex surged by 416.67 points to establish a fresh all-time high of 86,026.18. This performance eclipsed its prior record of 85,978.25, which was set on September 27, 2024.
In a parallel movement, the broader Nifty 50 index climbed 101.65 points to reach a never-before-seen peak of 26,306.95. This broader index had also previously touched its record intra-day high of 26,277 on the same date in September.
Global Catalysts Driving the Bull Run
Market experts attribute this positive momentum to a confluence of international factors. A significant contributor is the renewed hope for an interest rate reduction from the US Federal Reserve, which improves the appeal of emerging markets like India. Additionally, speculation around a potential peace agreement between Russia and Ukraine has bolstered overall risk appetite globally.
Supportive signals from international markets played a crucial role. US markets continued their ascent as optimism surrounding potential Fed rate cuts overshadowed declines in AI-focused stocks. Mirroring this positive trend, Asian markets opened higher, with a notable resurgence in buying activity within the technology sector.
Expert Technical Analysis and Market Outlook
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, provided a detailed technical perspective. He noted that the Nifty 50 witnessed a decisive breakout on Wednesday following a period of consolidation, closing significantly higher. The bullish pattern of higher tops and bottoms remains intact on the daily chart, with the recent downward correction being swiftly reclaimed.
Shetti identified immediate intraday support for the Nifty 50 in the 26,200-26,150 range. He suggested that a sustained upward move from current levels could potentially open the door for the index to target 26,500-26,600 in the coming few sessions.
Short-Term Stock Picks from an Analyst
For traders looking for short-term opportunities, Nagaraj Shetti recommended two stocks:
Rallis India Ltd: He advised buying at around ₹263 with a target price of ₹280 and a stop loss at ₹253, projecting a timeframe of 1-2 weeks. The analysis indicates the stock has formed a bottom reversal pattern around ₹245, with expanding volume and a positive RSI signal.
Sandur Manganese & Iron Ores Ltd: The recommendation is to buy at approximately ₹214.50, aiming for a target of ₹230 and setting a stop loss at ₹206, also within a 1-2 week window. The stock appears to be forming a bullish flag pattern on the weekly chart, supported by volume and RSI indicators.
Disclaimer: The views and recommendations mentioned are those of individual analysts. They do not represent the views of Mint. Investors are advised to consult certified experts before making any investment decisions.
