Nifty Surges Past 25,000 Mark Intraday, Closes at 24,981 as Auto Sector Shines
The Nifty index gained 103 points, closing at 24,981 and briefly crossing 25,000. Broader markets outperformed, with Nifty Midcap100 rising 1.00% and Smallcap100 advancing 0.70%. The auto sector was the top performer, reaching a 10-month high. Oil & Gas stocks continued to gain. Four IPOs opened for subscription: Patel Retail, Vikram Solar, Gem Aromatics, and Shreeji Shipping. Analysts remain optimistic, with support at 24,850 and resistance between 25,020-25,300.
*this image is generated using AI for illustrative purposes only.
The Indian stock market demonstrated robust performance as the Nifty index gained 103 points to close at 24,981, marking a significant day for investors. The benchmark index briefly crossed the psychologically important 25,000 level for the second consecutive day before retreating, signaling strong bullish sentiment in the market.
Broader Markets Outperform
While the Nifty made headlines, the broader markets showcased even more impressive gains. The Nifty Midcap100 index rose by 1.00%, while the Smallcap100 index advanced 0.70%, outpacing the benchmark and indicating widespread market strength.
Auto Sector Leads the Rally
The automotive sector emerged as the star performer of the day, with the Nifty Auto index reaching a 10-month high. This surge was primarily driven by expectations of pre-Diwali tax changes and potential GST cuts, which could boost consumer demand in the sector.
Oil & Gas Stocks Continue Upward Trajectory
Oil & Gas stocks extended their gains for a second consecutive session as supply concerns in the global market eased. This sector's performance contributed to the overall positive sentiment in the market.
IPO Market Heats Up
The primary market also saw significant activity, with four Initial Public Offerings (IPOs) opening for subscription:
- Patel Retail
- Vikram Solar
- Gem Aromatics
- Shreeji Shipping
This flurry of IPOs indicates strong investor appetite and confidence in the market.
Analyst Insights
Market analysts remain optimistic about the Nifty's prospects. Rajesh Bhosale of Angel One recommends a buy-on-dips strategy, expecting prices to test the 25,150 level. He further suggests that a breakout could potentially push the index to 25,670.
Multiple analysts have identified key technical levels for the Nifty:
| Type | Level |
|---|---|
| Support | 24,850 |
| Resistance | 25,020 - 25,300 |
These levels may serve as important reference points for traders and investors in the coming sessions.
Market Outlook
The Nifty's ability to sustain near the 25,000 mark, coupled with outperformance in mid and small-cap stocks, paints a positive picture for the Indian equity market. The auto sector's stellar performance and the buoyant IPO market further underscore the current bullish sentiment.
However, investors should remain cautious and monitor global cues and domestic economic indicators, as these factors can influence market movements in the short term.
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