The Indian stock markets are on the verge of creating history, marching towards their highest levels ever recorded this September. A positive opening, fueled by a robust global mood and strong domestic fundamentals, has set the stage for a potentially record-breaking session.
Market Performance and Key Drivers
As of 10:14 IST, the benchmark indices showed solid gains. The Nifty 50 increased by 0.14% to reach 25,946.35, while the BSE Sensex rose by 0.2% to 84,736.06. With the domestic earnings season largely behind us, market attention has pivoted back to encouraging developments concerning the India-U.S. tariff resolution, which analysts believe is a key catalyst for the upward move.
This positive momentum is not a one-day phenomenon. Last week, both the Nifty 50 and the Sensex registered impressive gains of approximately 1.6% each. This rally was primarily driven by stronger-than-expected corporate earnings and a significant state election outcome that boosted investor confidence. Sectors like IT and pharmaceuticals led the charge, with optimism further stoked by the U.S. government's reopening, signaling hopes for greater economic stability.
Global Context and Technical Outlook
The global landscape presented a mixed picture. Asian markets showed uneven performance, influenced by news that Japan's economy contracted for the first time in six quarters, a direct impact of U.S. tariffs. Furthermore, hopes for a U.S. rate cut in December dimmed after assertive comments from top Federal Reserve officials, affecting overall market sentiment.
Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities, provided a detailed technical perspective. He noted that the Nifty 50 has resumed its uptrend after a three-week consolidation phase, indicating renewed bullish strength. The index is trading above all key moving averages, confirming positive momentum.
A strong support base is seen in the 25,700–25,750 zone, with more substantial positional support at 25,450. On the upside, immediate resistance is placed at 26,100 and 26,277. A decisive symmetrical triangle breakout projects a positional target of 26,600 for the Nifty 50. Rajani cautioned that a close below 25,450 would invalidate this bullish setup.
Other indices are also showing strength. The Bank Nifty looks robust with a target around 60,000, while the Nifty Midcap100 Index has broken out to a new all-time high. Sectorally, Defense, Capital Markets, Banking & Financials, and Oil & Gas are exhibiting notable leadership on the technical charts.
Analyst Stock Recommendations
Analysts have also identified specific stocks poised for growth based on technical patterns:
Buy Bank of Maharashtra (CMP: ₹59.50)
Target: ₹64 | Stop-loss: ₹57
The stock has broken out from a consolidation phase with high volumes and is trading in a primary bullish trend above its key moving averages, supported by a strong PSU Bank index.
Buy Rites Ltd (CMP: ₹250)
Target: ₹270 | Stop-loss: ₹238
The share price has surpassed its 50 DEMA resistance with rising volumes. Railway stocks are gaining traction, and oscillators suggest a probable trend reversal.
Buy Mazagon Dock Shipbuilders (CMP: ₹2,820)
Target: ₹2,650 | Stop-loss: ₹3,100
The stock has broken out from a downward trendline on the weekly chart. It is trading above key moving averages, and the Defense sector index has also shown a breakout, indicating underlying strength.
Disclaimer: The views and recommendations above are from individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
