The Nifty50 closed above the 24,000 mark for the first time since May 8 after breaking out of a two-week consolidation range, with the index rising 312.40 points, or 1.32%, to close at 24,031.70 on Monday. According to NDTV Profit, the move comes after the Nifty traded between 23,262 and 23,860 for the past two weeks, with Monday's breakout above the upper end of that range raising expectations of a further move higher. The rally was led by banking heavyweights, Larsen & Toubro and Reliance Industries, with all 16 major sectoral indices trading in the green. The Nifty Bank index outperformed with a 1,238-point rise to 55,294, while the Midcap index advanced 577 points to 61,967. Among index heavyweights, HDFC Bank and ICICI Bank were among the top contributors to Nifty's gains, with Canara Bank emerging as the top gainer on the Nifty Bank index. Market breadth remained firmly positive with the NSE advance-decline ratio at 2:1, as reported by CNBC TV18. The BSE benchmark enjoyed a robust start to the session, rallying nearly 800 points, while the Nifty50 rang the opening bell about 1% higher above 23,950, climbing more than 200 points as of 9:15 AM. In the broader markets, the Nifty Smallcap 50 gained 0.60% as volatility dropped.
Investor sentiment received a significant boost after US President Donald Trump said that negotiations with Iran were progressing "constructively", though he added that Washington was not under pressure to reach a final agreement quickly. US Secretary of State Marco Rubio also confirmed over the weekend that some headway had been made in the talks, raising hopes that geopolitical tensions in West Asia may begin to ease. Markets have been closely tracking developments around the Strait of Hormuz, a critical global oil transit route whose potential disruption has weighed on sentiment for months. The rally followed a positive close on Wall Street, where the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all ended last week in positive territory. Asian stocks climbed firmly on Monday morning, riding the wave of positive global momentum, with Japan's Nikkei 225 surging more than three per cent to cross the 65,000 mark for the first time, while Hong Kong's Hang Seng and Australia's ASX 200 also posted gains. Brent crude oil fell 5% to $94.5 per barrel after US President Donald Trump indicated significant progress toward a peace deal that would reopen Iran's Strait of Hormuz, a vital artery of global energy movement, as reported by Mint. US President Donald Trump said over the weekend that both sides had largely negotiated a memorandum of understanding, according to Reuters, with Brent crude declining more than 5% to around $98 a barrel, easing concerns over inflation.
The Indian equity benchmarks displayed a robust rally on Monday fuelled by progress in the on-going Iran-US peace negotiations and recovering crude prices that kept sentiment bullish. "The daily chart formed a strong bullish candle, closing above both the 20-day SMA placed at 23,880 and the psychological 24,000 level," said Om Mehra, Technical Research Analyst, SAMCO Securities. "This market action signals a sustainable breakout of the crucial range movement and is a positive indication and signal continuation of upside momentum for the short term," noted Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. Accordingly, the 24,200 level will be a crucial resistance zone. A sustained move above 24,200 could trigger a sharp upside rally, potentially driving the index towards the 24,350 mark, as per Head of Technical and Derivatives Research at SBI Securities, Sudeep Shah. On the flipside, the 23,930 - 23,900 zone is expected to act as immediate support for the index. Notably, the VIX, a real-time market index which measures volatility, had a sharp fall and declined 6.7% during the day indicating that the market had stabilised, according to NDTV Profit. "Nifty witnessed a decisive breakout and closed strong-driven by short covering," said Rajesh Palviya, Head of Research, Axis Securities. "Call writers are on the backfoot and if Nifty sustains over 24,000 levels, gains of 200-300 points are expected on an immediate basis. Further gains toward 24,800 levels could materialise if positive triggers emerge on the geopolitical or domestic front."
Based on the width of the recent consolidation range, the measured upside target for the breakout stands near 24,458. That places the next potential upside zone around 24,450-24,460, which also coincides with the swing high recorded on May 7. On the downside, the 23,850-23,900 range is expected to act as immediate support. Before moving towards the higher target zone, the index may face resistance around the May 11 gap-down area between 23,997 and 24,127, which has only been partially filled so far. A sustained move above that zone may strengthen the case for a further rally. Technically, the session formed a strong bullish candle, while the opening gap remained unfilled. The index also closed above its 20-day moving average for the first time since the breakdown seen in early May. The Nifty has also moved back above its 50-day moving average, strengthening the near-term market structure. Momentum indicators have also turned supportive, with the daily moving average convergence divergence indicator (MACD) generating a bullish crossover, while the 14-period relative strength index (RSI) has moved above the 54 mark.
Banking stocks led the rally with the Nifty Bank index rising over 2%, supported by gains in HDFC Bank and ICICI Bank. As reported by CNBC TV18, ICICI Bank rose more than 2% after the Reserve Bank of India approved a two-year extension for Sandeep Bakshi as Managing Director and CEO. Canara Bank emerged as the top gainer on the Nifty Bank index. The PSU Bank index surged 3.10% while private sector heavyweights including HDFC Bank, ICICI Bank, and Axis Bank saw strong institutional buying. The RSI improved to 45.87, indicating gradual improvement in momentum, with immediate support placed around the 53,900-54,000 zone and resistance seen near the 55,400-55,500 range. On the 30-share Sensex, among the top gainers were stocks like Bajaj Finance, HDFC Bank, Eternal, State Bank of India and Bajaj Finserv. However, the laggards included stocks like Sun Pharmaceuticals, Hindustan Unilever, TCS and Infosys. "Banking stocks are available at decadal low valuation which is lending comfort to investors," said George Thomas, equity fund manager, Quantum AMC. "But if this crisis prolongs for a longer time, then there could be an impact on credit cost." The Bank Nifty and Nifty Financial Services indices rose 2.3% and 2.2%, respectively, while PSU banks gained 2.9% and private banks 2.1%, with sectorally, the gains were broad-based, with financial stocks leading the rally as improving macro sentiment supported the space.
The gains were broad-based, with the Nifty midcap index closing 0.94% and the Nifty smallcap index closing 1.2% higher. All sectoral indices except the Nifty FMCG index closed in green. The BSE's market capitalization increased by ₹5.86 lakh crore to ₹468 trillion. Foreign portfolio investors (FPIs) net bought shares worth ₹822 crore, while domestic institutional investors (DIIs) net bought shares worth ₹3,857 crore, according to provisional data from the National Stock Exchange. Eicher Motors was the top Nifty gainer, rising 6% after reporting healthy fourth-quarter results, according to CNBC TV18. From the Sensex basket, Eicher Motors, Adani Enterprises, Bajaj Finance, Larsen & Toubro, HDFC Bank and Tata Motors Passenger Vehicles were the major gainers. However, Max Healthcare Institute, Oil And Natural Gas Corporation, Hindalco Industries, Bajaj Auto, Tata Consumer Products and Sun Pharmaceutical Industries were the biggest laggards. Hindalco Industries declined nearly 1% amid profit booking after posting strong fourth-quarter earnings. Suzlon Energy erased part of its gains and fell nearly 3% from the highs after reporting a 6% year-on-year decline in fourth-quarter net profit. Poly Medicure dropped 5% after its fourth-quarter net profit fell 28% year-on-year, as reported by CNBC TV18. Sectorally, 23 of the 25 BSE indices ended in positive territory, with PSU banks, large banks, private banks and financial services stocks leading the gains, while hospitals and FMCG were the only sectors to close marginally lower.
