Indian equity benchmark indices witnessed a strong rally on Monday as improving sentiment around the ongoing Iran-US peace negotiations and easing crude oil prices boosted investor confidence across sectors.
The NSE Nifty 50 climbed past the crucial 24,000 mark for the first time in 11 trading sessions, while the BSE Sensex recorded its biggest single-day gain in nearly six weeks.
Market experts believe the bullish momentum could continue in the near term if key resistance levels are breached.
Nifty Forms Strong Bullish Breakout
According to analysts, the Nifty’s technical setup has improved significantly after Monday’s sharp rally.
Om Mehra, Technical Research Analyst at SAMCO Securities, said the daily chart formed a strong bullish candle, with the index closing above both the 20-day Simple Moving Average (SMA) placed near 23,880 and the psychological 24,000 level.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, stated that the market action signals a sustainable breakout from the recent consolidation range and points towards continuation of upward momentum in the short term.
Key Resistance And Support Levels For Nifty
Analysts are closely watching the 24,200 level, which is emerging as an important resistance zone for the benchmark index.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said a sustained move above 24,200 could trigger a fresh sharp rally and potentially push the Nifty towards the 24,350 mark in the coming sessions.
On the downside, immediate support is expected in the 23,930–23,900 range.
Volatility Index Drops Sharply
Another positive signal for the market came from the India VIX, the volatility index that tracks market fear and uncertainty.
The VIX fell sharply by nearly 8 percent during the trading session, indicating improving market stability and reduced investor anxiety.
Lower volatility often supports bullish momentum in equity markets.
Bank Nifty Continues To Outperform
The Bank Nifty index extended its gains and continued outperforming broader benchmark indices, driven by strength in banking and financial stocks.
Analysts expect the index to maintain its positive trend in the near term.
Sudeep Shah of SBI Securities said the Bank Nifty could move towards 55,800 initially, followed by 56,300 if the momentum sustains.
He added that the 54,900–54,800 zone is likely to act as a key support area on the downside.
Market Recap: Sensex And Nifty Post Strong Gains
Benchmark indices ended the day firmly higher as investor sentiment improved amid hopes of easing geopolitical tensions around the Strait of Hormuz.
- The NSE Nifty 50 closed at 24,031.70, gaining 312.40 points or 1.32 percent.
- The BSE Sensex surged 1,073.61 points or 1.42 percent to settle at 76,488.96.
The rally was also supported by cooling oil prices, which helped ease concerns over inflation and global supply disruptions.
Analysts Remain Positive On Short-Term Market Trend
Market experts believe that sustained foreign inflows, stable crude prices, easing geopolitical concerns, and improving technical indicators could continue to support the bullish trend in Indian equities.
However, analysts also caution investors to monitor global developments closely, particularly developments related to oil prices, interest rates, and geopolitical tensions.