The Indian stock market experienced a significant surge on Monday, buoyed by a sense of relief following the ceasefire in the India-Pakistan conflict and positive updates regarding the US-China trade negotiations. This optimistic atmosphere led the Nifty 50 index to leap by an impressive 916 points, ultimately closing at 24,924. Meanwhile, the BSE Sensex soared by 2,975 points, finishing at 82,429, while the Bank Nifty index climbed by 1,787 points to reach 55,382. Remarkably, all sectors concluded the day in the green, with IT, realty, and metal sectors standing out as the leading performers.

Market Overview

The broader market also reflected this bullish sentiment, with Mid-cap and Small-cap indices soaring over 4%, surpassing the gains of frontline indices. This positive momentum has drawn attention from market experts, including Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher. She highlights that the Nifty 50 has successfully breached the pivotal level of 24,800, signaling a potentially brighter outlook ahead.

Expert Insights

According to Parekh, the Nifty 50’s robust performance can be attributed to the bullish sentiment fueled by recent geopolitical developments. She anticipates that the index may soon target levels of 25,300 and 25,800. Parekh elaborated, stating, "The substantial gap-up opening of the Nifty 50, driven by the ceasefire news, suggests a strong bullish trend as the market breaks above the previous peak of 23,800. With this momentum, we can expect a generally positive sentiment in the near term. The critical support level to watch is the 200-DMA at 24,050."

Banking Sector Outlook

The Bank Nifty index also displayed remarkable strength, surpassing the 55,000 mark. Parekh noted that a decisive breakthrough past 55,900 could further solidify its upward trajectory, with potential targets of 56,700 and 59,020. She emphasized that the immediate support for the index is pegged at 54,000, and with leading banking stocks gaining traction, overall sentiment remains optimistic.

Today’s Trading Range

For today’s trading, Parekh identified key levels for the Nifty at 24,700 for support and 25,200 for resistance, while the Bank Nifty is expected to fluctuate between 54,500 and 56,000.

Stock Recommendations

In terms of specific stocks to consider, Parekh has recommended three options for investors:

• Firstsource Solutions Ltd (FSL)

  • Buy at ₹345
  • Target: ₹365
  • Stop Loss: ₹330

• Petronet LNG

  • Buy at ₹315
  • Target: ₹330
  • Stop Loss: ₹309
• NCC
  • Buy at ₹220
  • Target: ₹226
  • Stop Loss: ₹216

As the market continues to react to these unfolding events, investors are keenly watching for further developments that could influence trading strategies and stock performance in the coming days.