Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, reported a notable uptrend in the Nifty, indicating a 1,865-point rally or a 10 per cent increase from its low of 18,837 in October.
The Indian equities market experienced a surge, reaching a fresh high of 20,702 following the BJP's decisive victory in three states. Nifty demonstrated a gap-up opening and maintained a one-sided movement, ultimately closing with a gain of 419 points (2 per cent) at 20,689 levels, according to Khemka. With the exception of pharma, all sectors concluded in positive territory, with oil & gas, banking, and financials leading the gains, each registering a 3 per cent increase. Government-related sectors, including infra, capital goods, power, railways, defense, and PSU stocks, exhibited momentum on Monday.
Khemka attributed the market's momentum to the BJP's favorable election outcomes, robust macroeconomic data, and a reduction in global interest rate expectations. Rupak De, Senior Technical Analyst at LKP Securities, highlighted that the Nifty's gap-up initiation was driven by the exceptional performance of the BJP in state elections.
Technically, Nifty had surpassed the critical resistance level of 19,850, and there was a noticeable shift in Put positions towards higher strike prices, indicating anticipation of a robust upward rally. The overall sentiment is notably bullish, with expectations remaining positive unless Nifty falls below 20,400. On the upside, the index might progress towards the 21,000 mark.
(With Agency Inputs)
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