Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, experienced a positive surge on Monday, sustaining their early momentum and signalling a promising start to the week. This upward movement indicates a constructive effort to recover from recent losses.
The Sensex concluded the day at 80,109.85 points, marking an increase of 992.74 points or 1.25%. Similarly, the Nifty 50 finished at 24,221.90 points, up by 314.65 points or 1.32%. While the market has faced challenges recently due to fund outflows, lower-than-expected Q2 earnings from Indian companies, and ongoing high inflation, this rebound showcases resilience and potential for future growth.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the results from the recent major state elections have positively influenced market sentiment and paved the way for increased stability in government spending for the second half of FY25, aiding in the pursuit of capital expenditure targets.
The market rally has been broad-based, with sectors linked to capital expenditure, such as infrastructure, capital goods, and industrial, leading the way as investors anticipate a significant uptick in new order inflows. Looking ahead, the outlook for the second half remains encouraging, bolstered by favourable factors like a good monsoon, the festive season, and wedding celebrations, which are expected to help alleviate the impact of earnings downgrades experienced in Q2.
The Nifty 50 benchmark index displayed strong upward momentum, driven by gains across all sectors. This surge was largely influenced by the NDA's victory in the Maharashtra state elections, which boosted investor sentiment. On Monday, the Nifty 50 index surged by 314 points, closing at 24,221.90.
The session began with an upside gap, extending the pullback rally as buying interest was evident in the early hours. However, the index failed to sustain the election-driven momentum, retreating slightly from its intraday high of 24,351 and forming a bearish tick on the daily chart. Despite this, the Nifty 50 confirmed a breakout from the Falling Channel pattern with a gap-up opening and held above the Middle Bollinger Band, indicating a bullish setup in the near term. Technical indicators also support this positive outlook. The RSI has rebounded sharply from the oversold zone, registering a positive crossover, while the MACD also exhibited a bullish crossover, signaling potential for further reversal moves.
Additionally, foreign institutional investors (FIIs) showed improved sentiment, reducing their short positions in index futures. The Long/Short ratio increased to 31% from 23% on Friday, further reinforcing a positive stance.
Traders are advised to maintain a bullish bias unless the Nifty 50 index breaches the 24,000 level. On the upside, the index is expected to continue its rally beyond 24,350, with targets set at 24,500 and 24,700 levels if sustained momentum is observed.
On shares to buy or sell on Tuesday, Sachin Gupta recommends Cummins India Ltd, and Oil and Natural Gas Corporation Ltd (ONGC).
On the daily chart, the stock has reversed upward from the support of the Lower Bollinger Band and a horizontal line, sustaining above the 200-DEMA, which indicates bullish strength in the short term. Increased trading volume around the support zone also reflects growing buying interest among traders.
Based on these factors, we anticipate a buying opportunity in Cummins India Ltd around ₹3,535–3,520, with a stop-loss at ₹3,400 and upside targets of ₹3,670 and ₹3,750.
The stock surged more than 5% on Monday after forming a Bullish Harami candlestick pattern on the daily chart, indicating a bullish reversal. A significant volume spurt was observed on the chart, suggesting short-term buying interest. Additionally, on the weekly chart, the stock has rebounded from the 50% retracement level of its prior upward rally.
Traders are advised to adopt a buy strategy around ₹258-255, for a potential upside levels of ₹270 and ₹280, with a stop-loss at ₹246.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
