Nifty 50 Index Surpasses 24,400 Barrier, Sights Set on 25,000 Milestone

Indian Stock Market Extends Rally for Second Session

The Indian stock market continued its upward momentum on Monday, with strong gains across most sectors. The market's rally is a result of buying pressure, despite global market cues remaining mixed due to uncertainty over the US-Iran peace talks. Tensions in the West Asian conflict escalated over the weekend, leading to caution among investors.

The BSE Sensex jumped 419.40 points, or 0.53%, to trade at 78,912.94, while the NSE Nifty 50 was up 125.20 points, or 0.51%, at 24,480.00. The benchmark index touched an intraday high of 24,480.55. Market analysts expect the market to remain volatile in the near-term due to ongoing tensions in the West Asian conflict.

Market Trends

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A notable trend in the market is the outperformance of the broader market. While the Nifty Midcap and Nifty Smallcap indices have returned to pre-war levels, the benchmark Nifty 50 is still 4% below pre-war levels. Market participants are responding positively to good results from the broader market space, particularly when results beat expectations.

Technical Outlook

Technically, the Nifty 50 index is hovering above the crucial resistance zone of 24,300 – 24,400. A sustained breakout above this range will be essential to strengthen bullish momentum and extend the rally towards the 24,800 – 25,000 levels. The Nifty 50 has formed a bullish candle on the weekly charts and is trading comfortably above short-term averages, supporting a further uptrend from the current levels.

Options Front and Market Indicators

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On the options front, meaningful call writing has been witnessed across 24,500 and 24,600 strikes. On the put side, 24,400 has a substantial open interest, followed by 24,300 strike. The Nifty's Advance Decline Ratio is at 32:18 and the PCR is currently at 1.34.

Market Analysts' Views

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, expects the Nifty 50 index to witness strong traction from lower levels and carry forward the positive momentum witnessed in the past two weeks. He believes that 24,250 - 24,320 will act as a support and the Nifty 50 index can continue its upmove till 24,590 - 24,650.

In contrast, Ponmudi R, CEO of Enrich Money, suggests that the immediate support for Nifty 50 is placed near the 24,240 zone, which is the 50-day EMA. If this support is broken, selling pressure towards the next support at 24,000 is seen, which will be important to maintain the current structure.