On Monday, the Indian stock market saw a notable recovery, with both the NSE Nifty 50 and BSE Sensex bouncing back after a two-day decline. This resurgence was largely driven by significant gains in heavyweight stocks, as concerns surrounding the trade war eased, boosting investor confidence in emerging market assets. The Nifty 50 surged by 289.15 points, closing at 24,328.50, while the Sensex climbed 1,005.84 points to finish at 80,218.37.

Key Resistance and Support Levels for Nifty 50

According to Shrikant Chouhan, head of equity research at Kotak Securities, the Nifty 50 faces critical resistance between 24,400 and 24,500. If the index slips below 24,100, it may indicate a potential downturn, as it could jeopardize the current upward trend. Traders are advised to capitalize on intraday dips for buying and sell during market rallies.

• Resistance Levels:

  • 24,360: Crucial upper resistance.
  • 24,500: Significant psychological barrier.
• Support Levels:
  • 24,200 to 24,100: Immediate support range.
  • 24,000: If breached, could lead to declines towards 23,800 or 23,350.

Bank Nifty Outlook

The Bank Nifty also showed promising signs, with its all-time high of 56,100 acting as a key resistance. Hrishikesh Yedve, an assistant vice president at Asit C. Mehta Investment Intermediates Ltd, noted that sustaining above this level could propel the index towards the psychological mark of 57,000. Conversely, immediate support is identified at 54,580.

Market Overview and Foreign Investment Trends

The recent market rebound was further supported by foreign portfolio investors, who have been net buyers for nine consecutive sessions, purchasing stocks worth ₹2,817.6 crore on Monday. Domestic institutional investors also reversed three days of selling, acquiring equities valued at ₹2,474.1 crore, based on provisional data from the National Stock Exchange.

• Futures and Options Activity:
  • Nifty May futures rose by 1.3% to 24,453.
  • Open interest for Nifty May futures increased by 7.6%.
  • For Nifty Options, the maximum call open interest was at 25,000, while the maximum put open interest stood at 24,000.

Featured Stocks Making Headlines

• Tata Technologies: The American private equity firm TPG Rise plans to divest approximately 1.58 crore shares, representing nearly 4% of the company, priced between ₹670-699, which is about 5% lower than the market price.
• IndusInd Bank: Arun Khurana, the deputy CEO, has resigned immediately, citing accounting discrepancies in the bank’s derivatives business as a key factor.
• HG Infra Engineering: The firm secured a provisional certificate for an order valued at ₹1,123 crore.

Currency Market Update

The Indian currency made a significant leap, hitting its highest level since April 4, climbing 50 paise to ₹84.95 against the dollar.

Global Market Insights

International markets also reflected positive trends, with Australia and South Korea witnessing gains. Investors are keenly awaiting economic data from the U.S. and earnings reports from major tech companies this week. The KOSPI and S&P ASX 200 indices were up 0.38% and 0.56%, respectively, while Japan’s markets remained closed.

With the stock market showing resilience and several positive indicators, investors are optimistic about the upcoming trading sessions.