The Indian stock market extended its gains on Thursday, with the Nifty 50 rising 0.70% to 24,191.35 and the BSE Sensex advancing 0.68% to 77,513.99 as of 12:50 PM IST. According to reports from LiveMint, the market rally was supported by declining crude oil prices and positive global market cues that boosted investor sentiment. Market sentiment remained broadly positive, with buying interest visible across most sectors, though metal and media stocks faced selective profit-booking pressure. However, recent developments show that Nifty 500 stocks have fallen below 50% above their 10-day SMA after Friday's plunge, down from 80% at the start of the week, as reported by The Financial Express.
The Nifty Auto index is beginning to display clear early indications of a bullish reversal, driven by a combination of supportive price action and strengthening derivatives data. The index is experiencing a notable surge in trading volumes over multiple weeks while attempting to break above a well-established horizontal resistance band. Nearly 90% of auto sector stock futures have witnessed consistent short covering during Thursday's session and on a week-on-week comparison, with key heavyweights like Mahindra & Mahindra (M&M), TVS Motor Company, Maruti Suzuki India, and Hero MotoCorp all contributing positively to the index's upward bias. The sector may initially move toward the 27,450 level and subsequently aim for the 27,900 mark if a decisive breakout occurs above the prevailing range.
The Nifty Realty index is currently demonstrating a well-structured bullish setup following a convincing breakout above a critical horizontal resistance level. The index continues to maintain its position above both the 20-day and 50-day simple moving averages, underlining consistent underlying strength. Almost 100% of realty sector stock futures experienced short covering during Thursday's trading session, while approximately 80% showed similar behaviour on a weekly basis. Leading players such as Godrej Properties, Oberoi Realty, Phoenix Mills, and Prestige Estates Projects are exhibiting robust technical structures, with the index potentially extending toward the 855 level if it sustains levels above 840.
Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities, noted that the Nifty 50 witnessed a sharp bounce back on Wednesday and continued its follow-through action on Thursday. The index is currently trading higher by 170 points with bullish pattern like higher highs and lows intact. The inverted hammer candlestick pattern formed in Nifty due to the resultant profit booking hints at trend reversal, with the close above 24,050 retaining upside hopes. Foreign Institutional Investor (FII) long-short ratio in the index future segment has risen sharply, though shorts have also risen through the week, restraining an outright positive stance.
