Stock Market Today: Sensex jumps 1000 points, Nifty 50 rises above 24,400. Five key reasons for the rise of the Indian stock market

Indian stock market benchmarks Sensex and Nifty 50 rose over 1 percent on Monday, marking a strong start to the last week of the month. This rise in domestic equities follows five consecutive sessions of significant declines due to sustained foreign fund outflows and underwhelming corporate earnings for the September quarter.

on BSE on Monday. sensex It opened higher at 79,653.67 compared to the previous close of 79,402.29 and continued its upward trend, gaining over 1.3%. Similarly NSE Stylish 50 It opened at 24,251.10 against the previous close of 24,180.80 and is trading above the 24,400 level, up more than 1%.

All sectoral indices were traded in green and broader markets, Nifty Midcap 100 and Nifty Midcap 100. Nifty Smallcap 100 indices also supported the rise.

Shriram Finance, Mahindra and Mahindra, ICICI BankAdani Enterprises and IndusInd Bank While the biggest gainers in Nifty 50 were Coal India, Bharat Electronics (BEL), Tech Mahindra, SBI Life Insurance Company and Axis Bank were the ones who lost the most.

“A major market trend in the final days of market correction is the flight to quality. Nifty corrected 8.3% from the last peak, while the mid and small cap indices corrected 9.8% and 9.3% respectively from the recent highs. In fact, dozens of stocks The carnage in mid- and small-cap stocks, where the correction is over 30% and even over 40% in some momentum stocks, is being masked by index movements. It is important to know that many large cap stocks are stable in this volatile market,” said Geojit Financial Services Chief Investment. Its strategist is Dr. VK Vijayakumar.

Here are five key reasons why the stock market is rallying today:

Global Tips

Asian markets traded higher, adding positive sentiment to domestic stocks. Japanese stocks rose strongly on Monday as the yen fell to a three-month low after Prime Minister Shigeru Ishiba’s coalition lost its parliamentary majority in Sunday’s election. Most other Asian markets were also on a positive note on Monday morning.

Short Coat

The Indian stock market is experiencing a brief rise on Monday after five consecutive days of sharp declines. Analysts said Nifty 50 fell 2.58% last week, marking its fourth consecutive week of losses.

“Given the good numbers coming from banking majors like HDFC Bank and ICICI Bank, where valuations continue to be fair, the trend of flight to quality is likely to continue. Investors can profit from these polarized valuations. The global market structure may take a positive turn after Israel’s suppressed attacks on Iran led to a sharp decline in crude oil prices by avoiding Iranian oil fields. The upcoming US presidential elections and the uncertainty associated with it will continue to put pressure on the markets,” said Vijayakumar.

Sectoral Trends

All sector indices registered strong gains on Monday, with Nifty PSU Bank, Nifty Metal, Nifty Auto and Nifty Realty leading the rally.

The bullish momentum in the Indian stock market today was strongly supported by gains in banking stocks, with notable gains in Bank of Baroda, Canara Bank, ICICI Bank and Punjab National Bank (PNB). ICICI Bank’s positive second quarter results further boosted market sentiment.

technical factor

On Friday, Nifty 50 fell to its support level of 24,100 and started to rise in the last session of the day. On the daily chart, the index has formed a bearish candle with a large wick to the downside, indicating strong buying approaching the closing session.

On the positive side, Nifty 50 broke the resistance level at 24,400 today and analysts believe that a break above this level could extend the index’s gains to 24,750.

“Based on the historical patterns of the current week in seasonal data, Nifty may attempt a bounce this week. This week is the 44th week of the calendar year, and a 10-year analysis starting in 2014 shows that the market closed the week up 80%, with an average gain of 1.4%. In fact, the last one of this week ended in the red eight years ago in 2016,” said Akshay Chinchalkar, Head of Research at Axis Securities.

According to him, the tactical bias remains bearish and any bounce in Nifty 50 will face stiff resistance in the 24,413 – 24,462 zone, while support lies at 24,073. Any break below this support will expose the all-important 23,779.

Crude oil

Crude oil prices fell more than 4% on Monday after Israel’s weekend attack on Iran bypassed oil or nuclear targets, easing geopolitical tensions in the Middle East.

While Brent crude oil fell by 4.31% to $72.77 per barrel, US West Texas Intermediate (WTI) crude oil futures fell by 4.49% to $68.56. Both Brent and US WTI crude oil futures hit their lowest levels since October 1 at the open.

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms and not Mint. We recommend that investors consult certified experts before making any investment decisions.