Indian stock markets extended their winning streak for the third straight session on Monday, supported by strong buying in IT and banking shares.
The Sensex jumped 582.95 points to close at 81,790.12, while the Nifty gained 183.4 points to end at 25,077.
Bank Nifty also surged past 56,100, hitting a high of 56,164, with resistance seen at 56,300–56,500 and support around 55,821–55,500.
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According to Anil Singhvi, Market Expert and Managing Editor, Zee Business, the data for Indian markets is looking extremely strong.
“The Nifty’s 25,000 put option has built an open interest of more than 3 crore shares, making it a solid base. Additionally, 2.5 crore shares are standing at the 24,900 put and around 1.65 crore shares at the 24,950 put. This clearly establishes a rock-solid support zone between 24,900–25,000,” he said.
On the other hand, call writers are almost absent. Singhvi pointed out, “The highest call open interest stands at just 1.6 crore shares at 25,100, which is almost half of what the put writers have built. This indicates the market is well-prepared for an upward move.”
“Unless an unexpected negative news flow hits the market, Nifty is likely to hold strong. Traders can treat 24,900 as a support base or stop-loss and continue with long positions,” he advised.
Bank Nifty at a Crucial Point
Bank Nifty is currently trading near 56,685. The crucial resistance lies at 56,150–56,200, which also acted as a barrier during previous attempts in August and September. The index has once again tested this zone.
Singhvi said, “Profit booking is advisable around these levels. Fresh long positions should be created only if Bank Nifty gives a closing above 56,200. Otherwise, it is better to hold existing positions with protection. Traders should also keep a 55,800 put option as insurance in case of a sudden reversal.”
While the overall trend remains strong, Bank Nifty is at a critical juncture. A sustainable move above 56,200 will open the door for further gains. Otherwise, a dip could offer a fresh entry point.
Risk Factor
Singhvi also cautioned traders about the Nifty Put-Call Ratio (PCR), which currently stands at 1.52. “This indicates an overbought condition, raising the chance of a sudden correction. However, such a dip should be seen as a buying opportunity near 25,000 levels,” he concluded.
Read More: Which sectors could spark biggest stock market rally? Expert shares his top pick with Anil Singhvi
Stock Market Today
On Monday, Broader markets participated in the rally, as the Nifty Midcap 100 rose 0.89 per cent and the Nifty Smallcap 100 added 0.28 per cent.
Among top performers, TCS, Tech Mahindra, Eternal, Axis Bank, and Bajaj Finance climbed up to 3 per cent, while Trent, Tata Steel, Power Grid, and Titan ended in the red.
Sector-wise, IT stocks led the gains with the Nifty IT index rising 2.28 per cent, while private banks, financial services, and healthcare also closed higher.
However, metals, FMCG, and media stocks came under pressure and slipped nearly 1 per cent.
Global Market Outlook
US futures continue to trade in the green with Dow futures up by 52 points and Nasdaq futures showing a gain of 113–114 points.
However, European markets remain under pressure, witnessing declines of nearly 1% to 2.5% due to local crises in some countries.
Crude oil has managed to recover 2% but still trades below $66 per barrel. Meanwhile, the Indian rupee remains just 3 paise away from hitting its record low.
