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Stock market recap: Indian equities posted a powerful rally on Thursday, extending their winning streak to a sixth consecutive session. A sharp decline in crude oil prices, strong foreign buying, and improving global sentiment following the U.S. midterm elections drove a broad-based surge.
Nifty 50 jumped 576 points, or 2.40%, to close at 24,536.60, its highest close in over two months, while Sensex soared 2,008.61 points, or 2.60%, to settle at 79,310.01. Brent crude fell below $95 per barrel, about 20% below last Friday's six-month high, as the Democrats' sweep in the U.S. midterm elections raised hopes that a weakened Trump administration would seek a deal with Iran.
Foreign investors bought ₹7,284 crore shares on Wednesday, taking four-session purchases to about ₹20,834 crore, while the rupee hit a two-week high and bond yields eased. Banks led the charge, with Bank Nifty surging 3.33%. At the same time, Auto and Cement indices gained more than 3%. Shriram Finance was among the top gainers, rising about 6%, as Financials, Autos, and Aviation stocks saw heavy buying. Breadth was strongly positive, with 2,547 stocks advancing, 1,084 stocks declining, and 92 remaining unchanged. Festive demand around Dhanteras and crude oil prices will remain in focus.
Two stock recommendations by MarketSmith India:
Buy: Sambhv Steel Tubes Limited (current price: ₹168)
Buy: Punjab National Bank (current price: ₹126)
Indian equity markets rallied strongly on Thursday, with Nifty 50 surging 576 points (2.40%) to close at 24,536.60, up from 23,960.60. The index opened at 24,378.05, touched an intraday high of 24,579.90, and maintained its upward momentum throughout the session, closing near the day's high. Sectoral performance was broadly positive, led by Nifty Auto (+4.14%), Financial Services (+3.97%), Realty (+3.52%), Private Bank (+3.44%), and PSU Bank (+3.13%). IT (+2.42%) and Consumer Durables (+2.32%) also registered healthy gains, while Media (-0.84%) was the only major sectoral laggard. Market breadth remained decisively positive, with 2,547 stocks advancing, 1,084 stocks declining, and 92 remaining unchanged. This translates into an advance-decline ratio of 2.35:1 and indicates widespread buying interest.
Nifty 50 witnessed a strong bullish breakout, forming a robust bullish candle on the daily chart and reflecting aggressive buying momentum. The index has decisively moved above its key short-, medium-, and long-term moving averages, signalling a significant improvement in the broader technical structure. Notably, the sharp upward move has also pushed the index above its prevailing descending trendline, suggesting a potential reversal of the earlier corrective trend. The Relative Strength Index (RSI) has surged to 74.69, entering overbought territory and indicating strong bullish momentum, while also signalling the need for caution amid the possibility of near-term profit booking. Meanwhile, the MACD has generated a bullish crossover, with the MACD line moving above the signal line and an expanding positive histogram indicating strengthening upward momentum.
The index staged a strong rebound from lower levels, closing above its 200-day moving average (200-DMA), signalling renewed buying interest and improved near-term market sentiment. Technically, the recovery indicates strengthening bullish momentum, although sustained follow-through buying will be crucial to confirm a further upward move. On the upside, 24,800–25,000 is expected to act as a key resistance area, where selling pressure could emerge. Conversely, 24,300–24,000 is likely to provide immediate support, making it an important zone to monitor for the sustainability of the ongoing recovery.
Nifty Bank opened on a strongly positive note, gapping up nearly 1,190 points, and kept gaining through the session as a brief dip toward 56,700 drew fresh buying. The index opened at 57,102.80, touched a high of 57,847.65, a low of 56,718.20, and closed at 57,773.65, up 1,860.05 points or 3.33%. The day's low held well above the previous close of 55,913.60, leaving an unfilled breakaway gap. A long bullish candle cleared the 50-, 100-, and 200-SMA in one session. All 14 constituents ended higher. Among heavyweights, ICICIBANK (+5.33%), AXISBANK (+3.90%), and HDFCBANK (+3.16%) led, while SBIN (+2.80%) and KOTAKBANK (+1.65%) lagged. FEDERALBNK (+0.98%) was the weakest constituent.
The 14-day Relative Strength Index (RSI) jumped to 69.16, well above its 47.08 average and just below the 70 overbought mark. This confirms strong buying momentum after a steady climb from the 40 zone in late October. The Moving Average Convergence Divergence (MACD) line at 86.16 has crossed above the zero line and is well above its signal line at −223.53. The histogram, at 309.69, shows its tallest positive bar in months, pointing to a strengthening uptrend. No bearish divergence is visible. The 21-SMA is turning higher and the 100-SMA has edged above the 200-SMA, improving the trend structure. However, with the RSI near 70, a brief consolidation is possible.
Immediate support lies at 56,700–56,600, where the day's low meets the cluster of the 100 and 200 SMA. The next support is the 50 SMA at 55,830, near the gap zone. On the upside, 58,000 is the immediate psychological hurdle, and the July–August swing highs near 58,600 form the next resistance. The macro backdrop has turned supportive. Brent crude slipped below $100 a barrel, the US midterm results raised hopes of an early end to the West Asia conflict, and foreign institutional investors returned as buyers ahead of Diwali. If the index holds above 56,600, we expect a move toward 58,000–58,600 in the coming sessions. An overbought RSI may first cause a short pause.
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MarketSmith India breaks through the market clutter to bring actionable investment ideas into focus. Our founder and legendary investor, William J. O'Neil, studied these trends and formulated the pathbreaking methodology, the CAN SLIM®. For over five decades now, MarketSmith has been successfully delivering great investment ideas based on its investment philosophy.
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