Bulls Roar Back: Nifty Jumps Over 200 Points

During the first day of a holiday-shortened week, the Nifty recovered all of Friday’s losses by gaining 221 points (0.91%) to close at 24585. The index opened slightly higher and continued to rise throughout the day. Leading the charge among the Nifty’s top performers today were Adani Enterprises, Tata Motors, and Eternal. Conversely, it proved to be a tougher session for Hero MotoCorp, BEL, and Bharti Airtel, which ended as the major losers within the Nifty pack. Trading volumes in the NSE cash market were sharply lower by 19% compared to last Friday.

With the sole exception of Nifty Consumer Durables, all other sectoral indices ended the day in the green. Among them, Nifty PSU Banks, Realty, Healthcare, and Auto led the charge, recording the highest gains and signaling a widespread return of investor confidence. The positive sentiment extended powerfully into the broader market as well. Both the Nifty Midcap and Smallcap indices gained alongside the benchmark.

Midcap & smallcap indices gain

The Nifty Midcap 100 Index surged 0.85%, while the Nifty Smallcap Index rose 0.36%. Market breadth, a key indicator of underlying sentiment, also turned decisively positive after four consecutive days of negativity, with advancing shares comfortably outnumbering declining ones. The advance-decline ratio on the BSE stood at a healthy 1.18, underscoring the improved market mood. Short term trend has turned positive as Nifty has closed above its 5-day DEMA (24553) for the first time in 13 sessions. For the past three consecutive sessions, the Nifty has found support around the 24340 level, establishing it as a strong short-term base. On the upside, the 20-day DEMA at 24793 and the 50-day DEMA at 24841 are expected to act as short-term resistance levels.

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Source: HDFC Securities Prime Research