Indian Stock Markets Rally on Trade Deal Optimism and Global Strength
Benchmark indices Sensex and Nifty 50 experienced a significant upward movement on Monday, February 9, registering gains of approximately 0.7% each. This surge was primarily fueled by encouraging developments from the interim India–US trade agreement and a strong closing performance in both US and Asian markets, which collectively boosted investor sentiment on Dalal Street.
Sectoral Performance and Market Dynamics
During early trading sessions, PSU bank stocks emerged as the top performers, soaring by an impressive 3.42%, closely followed by metal stocks which gained 1%. However, the overall market rally was slightly tempered by restrained movement in FMCG shares. Market analysts observed a broadly positive risk-on sentiment across trading floors, with substantial participation from banking, metals, PSU banks, real estate, and consumption-related sectors.
Financial experts believe this rally signals a notable improvement in market sentiment and a revival of buying confidence among investors. Interestingly, the IT sector displayed mild underperformance during this period, suggesting a selective rotation of investments rather than a uniform risk appetite across all market segments.
Technical Levels and Market Performance
As of 14:18 IST, the Nifty 50 advanced by 0.60% to reach 25,888.70, while the BSE Sensex gained 0.51% to touch 84,000.52. Market technicians noted that after experiencing a correction of more than 800 points from the swing high of 26,341 recorded after the trade deal announcement between the US and India, the Nifty 50 has partially filled the gap range of 25,108-25,641 and demonstrated a strong bounce-back.
Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities, provided detailed insights into the market outlook. According to Rajani, the primary trend of the Nifty 50 has now turned bullish as the index has secured its position above all key moving averages. Technical indicators and oscillators including MACD and RSI have turned bullish on both daily and weekly charts.
Short-term resistance for the Nifty 50 is identified near the 26,000 level, above which the index could potentially extend its rally toward fresh all-time highs above 26,373. On the downside, the band of 25,450-25,500 is expected to offer strong support to the index. From a sectoral perspective, metals, PSUs, auto ancillaries, and infrastructure sectors appear strongest and could potentially outperform in the near term.
Expert Stock Recommendations for Near-Term Investment
Market analysts have identified specific investment opportunities based on current technical patterns:
- Samvardhan Motherson
- Buy at ₹121 | Target ₹137 | Stop-loss ₹114
- The stock price has broken out from a downward sloping trend line with a primary bullish trend characterized by higher tops and higher bottoms. The stock is positioned above long-term key moving averages, indicating an uptrend across all time frames. Daily RSI is sustaining above 50, suggesting sustained upward momentum, while daily MACD has given a bullish crossover on its signal line.
- CPSE ETF
- Buy at current levels | Target ₹107, 111 | Stop-loss ₹93.50
- The ETF price has broken out from a horizontal trend line on the daily chart. The primary trend remains bullish with higher tops and higher bottoms. The ETF is positioned above long-term key moving averages, confirming an uptrend across all time frames. Daily RSI is sustaining above 50, indicating continued upward movement, while daily MACD is placed above both the signal and zero lines.
Important Disclaimer: The views and recommendations presented above are those of individual analysts, experts, and broking companies, and do not represent the official stance of any financial publication. Investors are strongly advised to consult with certified financial experts and conduct thorough due diligence before making any investment decisions.
