The Indian stock market delivered exceptional gains on Monday, with benchmark indices Sensex and Nifty 50 surging over 1% each. According to latest reports, the BSE Sensex jumped 1,088.18 points, or 1.4%, to an intraday high of 76,503.53, while the NSE Nifty 50 surged 318.8 points, or 1.3%, above the key 24,000-mark at 24,038.10. The broader Nifty closed higher at 24,031.70, up 312.40 points or 1.32%, settling near its day's high at 76,488.96. The Bank Nifty index also rallied 1,182.80 points, or 2.19%, to 55,238.15. The benchmark Nifty 50 decisively moved above its broader range-bound structure, signalling an improvement in near-term sentiment, with the index closing above the psychological mark of 24,000 for the first time since May 8.
According to market experts, the Nifty has moved above its 20-day moving average (20-DMA) for the first time since May 8, indicating improving near-term momentum. As reported by Moneycontrol, Santosh Meena, Head of Research at Swastika Investmart, noted that "the 24,000-24,200 zone is expected to act as an immediate resistance area. The 100-DMA is currently placed around 24,600, and a decisive move above this level could pave the way for a rally towards the 200-DMA near 25,000." The index has surpassed the 23,850 – 23,900 zone, which had been acting as resistance over the last couple of weeks, indicating a likely range breakout. Market participants are now closely watching whether the benchmark index can move towards 25,000 in the near term.
The sharp market rally was largely driven by the sharp fall in crude oil prices, with Brent crude declining 5.58% to USD 97.76 per barrel on expectations of a possible agreement linked to the Iran conflict. As reported by Moneycontrol, V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that "crude has dipped USD 5 to below USD 100 on expectations that the US and Iran are close to a deal." The decline pushed crude prices below the USD 100-mark for the first time in more than two weeks. Investor sentiment remained firm amid reports that the US and Iran were moving closer to a peace agreement, with market experts emphasizing that if this expected deal holds and crude drifts down, it could turn out to be a turning point for the market.
On the derivatives front, meaningful call writing was observed at the 24,000 and 24,100 strikes, indicating resistance around these levels, as reported by Livemint. On the put side, the highest open interest was concentrated at the 23,900 strike, followed by 23,800, suggesting immediate support for the index. For traders holding long positions, 23,500 should be maintained as the stop-loss level, according to analysts. Ponmudi R, CEO of Enrich Money, believes the psychological 24,000 mark now serves as an important immediate resistance level, noting that a decisive breakout above this zone could strengthen bullish momentum further and open room for an advance towards the broader 24,200–24,400 range.
Market experts emphasize that sustaining above the 24,000 psychological mark will be essential for the continuation of upward momentum. If the index decisively moves above 24,120, it could witness an extension of the rally towards 24,320, while a slip below 23,850 would place the next support zone between 23,600 and 23,500. As noted by analysts, there are indications that the index has formed a near-term bottom around the 23,300 level. The strong performance was supported by improved investor sentiment, driven by optimism over potential US-Iran peace talks and the sharp decline in crude oil prices, with the market waiting for clarity and certainty on any potential deal.
