Domestic equity markets opened the week on a strong footing, supported by easing trade frictions between the United States and China and renewed optimism over a potential trade pact between India and the US. The positive sentiment extended the previous session’s momentum, driving key benchmark indices higher for the second straight day.
The S&P BSE Sensex surged 566.96 points, closing at 84,778.84, while the NSE Nifty50 advanced 170.90 points to settle at 25,966.05. Broader indices also joined the rally, reflecting widespread participation across sectors. However, market volatility inched up slightly as traders prepared for the upcoming monthly Futures and Options (F&O) expiry.
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty remained resilient through intraday consolidation. He noted that the index maintained a steady trajectory above its breakout zone, signalling continued strength. “The current setup looks favourable for a further rally, with dips likely to attract buying interest. Immediate support lies at 25,700, below which weakness may emerge, while resistance is positioned at 26,000. A firm close above this level could trigger an extended move toward 26,500 in the near term,” he said.
Market confidence was further reinforced by global developments. Vinod Nair, Head of Research at Geojit Financial Services, attributed the broad-based recovery to progress in US–China trade negotiations and softening inflation in the US. He explained that the lower-than-expected US CPI data had revived expectations of a Federal Reserve rate cut, boosting risk appetite. At the same time, a decline in gold prices suggested easing demand for safe-haven assets. “Easing global headwinds, coupled with strong domestic reforms, continue to justify India’s premium market valuations,” he added.
Data from Ashika Stock Broking highlighted strong buying interest in Public Sector Banks, Realty, Oil & Gas, Infrastructure, and Metal sectors, while Pharma, Healthcare, and Media stocks lagged behind. Derivatives activity remained upbeat, with 158 stocks advancing compared to 56 declining, indicating a bullish undertone.
The highest open interest buildup was observed in Indus Towers, SRF, SBI Life, Alkem, and Sona Comstar, reflecting fresh long positions and heightened investor participation. Analysts expect this constructive momentum to persist in the short term, though they caution that a sustained move above the 26,000 threshold will be crucial to confirm the next phase of the rally.
