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Stock market recap: As the week began, markets emerged from a phase of measured consolidation with volatility building beneath the surface. The gradual swings of the previous series gave way to stronger directional conviction, driving a sharp rally from the opening session.
On Monday, Sensex climbed 107.25 point to settle at 81,106.65, while the Nifty rose 58.25 points, or 0.23 per cent, to close at 25,044.65.
Markets were shut on Tuesday for Diwali-Balipratipada.
MANKIND (current market price ₹2,668.30)
AEGISLOG (current market price ₹1,226.70)
On 9 November, Indian equity markets extended their winning streak, although gains were modest compared with the sharp rally of the previous week. The Nifty 50 rose 58.25 points to close at 25,044.65, holding above the crucial 25,000 mark, while the Sensex gained 107.25 points to settle at 81,106.65, its highest closing level in more than eight months.
The session remained volatile, with investors booking profits after a seven-session rally. However, buying in banking and select heavyweight stocks helped the benchmarks recover from intraday lows and end in positive territory.
Banking stocks led the gains, with PSU banks significantly outperforming the broader market. The Nifty PSU Bank index surged nearly 3.7%, while the Bank Nifty advanced around 1.5%, supported by gains in SBI, HDFC Bank, ICICI Bank and other financial stocks. Pharma stocks also attracted buying interest, while IT and metal stocks faced profit-booking. HCL Technologies, Infosys, Tech Mahindra and Tata Steel were among the key laggards.
Strong performance in GIFT Nifty points to a firm start for the market. With the indices moving beyond key resistance zones, investors need the conviction to buy even at these levels. The positive sign is that indices have moved ahead sharply, while individual stocks are taking longer to catch up. This suggests that index traders may still have an opportunity to participate in the rally.
Broader markets remained resilient, with the Nifty Midcap 100 gaining around 0.55% and small-cap stocks posting marginal gains. Sentiment continued to draw support from easing crude oil prices, improving foreign investor participation and reduced geopolitical concerns. The India VIX declined sharply, signalling lower market anxiety and lending support to the recovery.
Technically, the Nifty has broken above multiple resistance zones, including key moving averages and a falling trendline, and closed above the important 24,800 supply zone on Monday. The previous Nifty expiry also offered encouraging signs of short-covering. Supported by favourable overnight cues, the index could now head towards its next major resistance zone around 25,500.
Momentum remains exceptionally strong, with the relative strength index (RSI) moving above 77 and entering overbought territory. This raises the possibility of near-term profit-booking and a cooling-off phase. However, overbought readings are common during strong trending markets and do not necessarily signal an immediate reversal.
Immediate support is placed around 25,000, followed by stronger support in the 24,800-24,500 range and then near 24,200. On the upside, a sustained move above 25,100 could open the way towards 25,500 in the coming weeks.
Investors should look to buy the index on dips towards 25,000 rather than chase the rally at current levels. The Indian equity market has staged a surprisingly strong recovery, and the underlying momentum remains positive, even as the possibility of a near-term pause warrants caution.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
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Raja Venkatraman is the co-founder of NeoTrader, where he heads the training division. He conducts both offline and live market workshops, seminars, and webinars. He has been working under the guidance of Dr C K Narayan, his mentor and founder of Growth Avenues, for more than 20 years. He is an active trader in multiple asset classes, and actively shares his views on YouTube, blogs at NeoTrader, and on reputed news channels and websites. His Sebi-registered research analyst registration no. is INH000016223.
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