Stock market today: On Monday, 101 stocks hit their 52-week high, including Bharat Electronics Ltd, JK Cement Ltd, Laurus Labs Ltd, Maharashtra Scooters Ltd, Manappuram Finance Ltd, Max Healthcare Institute Ltd, Max Financial Services Ltd, Muthoot Finance Ltd, Narayana Hrudayalaya Ltd, and The Ramco Cements Ltd.
In contrast, 71 stocks touched 52-week lows, with notable mentions like Easy Trip Planners Ltd, Jai Balaji Industries Ltd, Naksh Precious Metals Ltd, National Standard (India) Ltd, Navkar Urbanstructure Ltd, Shalby Ltd, and Schloss Bangalore Ltd.
India’s stock market indices increased on Monday, recovering from earlier fluctuations as gains in technology and financial sectors countered the uncertainty arising from the ongoing Israel-Iran conflict.
The Nifty 50 climbed 0.92% to 24,946.50, while the BSE Sensex advanced 0.84% to 81,796.15.
Analysts suggest that the markets are demonstrating resilience in spite of geopolitical and trade uncertainties, thanks to supportive macroeconomic factors like decreasing inflation, effective fiscal management, and significant interest rate reductions.
Vinod Nair, the Head of Research at Geojit Investments, mentioned that even with the ongoing geopolitical tensions between Israel and Iran, the market experienced an upward movement, bolstered by gains in large-cap stocks, as investors concentrated on long-term fundamentals during these volatile times.
Developments in the Middle East are likely to impact short-term market sentiment, with any indications of de-escalation being closely observed. Small-cap stocks are anticipated to lag behind in the near future due to their high valuations and lack of short-term catalysts. Within sectors, oil and gas witnessed significant gains, while the IT sector excelled ahead of the upcoming US Federal Reserve policy meeting, which is expected to clarify the interest rate outlook further.
Nifty 50 Outlook
According to Rupak De, Senior Technical Analyst at LKP Securities, the index witnessed a sharp rally as it reclaimed the 21-EMA after a brief dip below it. On Friday, it had already found support at the recent consolidation low, and the index appeared fairly oversold on the hourly chart.
Additionally, the weak FII long-short ratio of around 20% in index futures set the stage for the smart recovery that Nifty 50 has just experienced. Currently, with investors awaiting the Fed’s follow-up commentary post the rate announcement, a steep directional move is not expected for now. However, a rally towards 25,350 looks highly probable once Nifty 50 reclaims the 25,000 mark. On the downside, support is placed at 24,850.
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