India’s stock markets continued their bullish streak for a fifth straight session on Monday, driven by gains in banking stocks and a softer US dollar. As of early afternoon, both benchmark indices reached their highest levels since early January. The Nifty 50 surged 1.40% to 24,186.25, while the Sensex jumped 1.36% to 79,622.30.
Market sentiment remained upbeat, especially following robust earnings from major financial institutions. ICICI Bank and HDFC Bank led the rally with gains of 0.9% and 1.3% respectively, touching record highs. According to Macquarie Capital’s Suresh Ganapathy, the financial sector is now considered a top investment choice, thanks to favorable valuations and increasing foreign investment, with hopes that US tariffs will have a limited impact on these firms.
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Derivatives Market Snapshot
A combination of long build-up and short covering pushed both indices higher over the week. The Long-Short Ratio rose from 25% to 30%, indicating a more bullish stance among traders. After a strong performance on Thursday, the Nifty looks poised to continue its upward move, potentially crossing the 24,000 mark. Dips towards 23,600–23,700 are expected to attract buying interest.
Foreign Institutional Investors (FIIs) were net buyers in the cash market, investing over ₹4,667 crore. In index futures, net buying stood at ₹439 crore, with open interest data suggesting fresh long positions.
Technical Analysis by Rupak De, LKP Securities
Nifty 50 Outlook
Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty has successfully broken past its previous swing high and moved above the 100-day EMA, confirming a mid-term bullish trend. If the index crosses the 24,100 level decisively, a further rally toward 24,500 is likely. Immediate support is seen at 23,650, with stronger support at 23,300.
Key Derivatives Data:
- Heavy open interest was recorded at the 23,850 Put and Call levels.
- Strong put writing at the 23,500 strike signals solid support.
- Maximum call OI was seen at the 24,200 strike.
Suggested Strategy: Maintain a bullish outlook unless the index dips below 23,500.
Trade Idea: Buy Nifty 50 April 24,000 Call Option above ₹130
Target: ₹180
Stop Loss: ₹100
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Stock Picks by Rupak De
1. Eternal (CMP: ₹230–₹232 | Target: ₹250 | Stop Loss: ₹219)
Eternal has broken out of a falling wedge pattern, suggesting a shift from bearish to bullish momentum. The stock now trades above its 50-day EMA, supported by a bullish RSI crossover. Short-term momentum looks promising, and the stock could touch ₹250. Strong support lies at ₹219.
2. Indian Oil Corporation – IOC (CMP: ₹134 | Target: ₹144 | Stop Loss: ₹129)
IOC has recently broken out of a consolidation pattern on the weekly chart. The stock is trading above its 100-week EMA, a strong bullish indicator. A bullish RSI crossover further reinforces the positive sentiment. If the momentum sustains, the stock could head toward ₹144.
3. Torrent Pharmaceuticals (CMP: ₹3,254 | Target: ₹3,500 | Stop Loss: ₹3,187)
Torrent Pharma is showing sustained strength, with the price staying above its key moving averages, including the 200DMA. The rising RSI with a bullish crossover points to continued upward momentum. The short-term view remains bullish with a target of ₹3,500.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of financeXaditya. We advise investors to check with certified experts before making any investment decisions.
