Retail sentiment on Nifty moved from bearish to neutral on Stocktwits, signaling improving confidence. An analyst believes a breakout above 24,980 is likely if momentum sustains above 24,800.
Indian equity markets ended higher on Monday, with the Nifty reclaiming 24,700, led by buying in metals, autos, and real estate. Rate sensitives performed ahead of the Indian central bank’s rate decision due later this week.
On Monday, the Sensex closed 418 points higher at 81,018, while the Nifty 50 ended 157 points higher at 24,722. Broader markets outperformed, with the Nifty Midcap index ending 1.4% higher and the Smallcap index rising 1.3%.
And the retail investor sentiment surrounding the Nifty 50 moved from ‘bearish’ to ‘neutral’ by market close on Stocktwits.
Stock Moves
Sectorally, barring FMCG, all sectors ended in the green, led by metals (2.5%), real estate (1.7%), and autos (1.6%). The IT sector saw a strong recovery during the day to end 1.6% higher.
Two-wheeler stocks surged following strong July sales data. Hero Motocorp was the top Nifty gainer, rising over 5%. TVS Motor rose 2.7%, while Bajaj Auto gained 1.6%.
ABB fell 5% after margin pressure in Q1 and cautious management commentary weighed on investor sentiment.
On the other hand, earnings movers include Sarda Energy (20%), Aether Energy (+13%), UPL (+7%), and MCX (+5%). Delhivery also hit fresh 52-week highs on the back of strong June quarter results.
Stock Calls
Analyst Yogesh Nirwan recommended buying EIH Hotels for a target price of ₹415, ₹425, and ₹469 with a stop loss at ₹385. Driven by strong Q1 earnings, he expects a turnaround in business and a breakout ahead on its charts.
Markets: What Next?
Analyst Manjushree Sharma noted that Nifty is showing signs of a strong intraday recovery after forming a classic Morning Star pattern near the bottom support zone around 24,700. Volumes validate this bullish reversal setup.
According to her, the next key resistance lies at 24,980, where the 200 Exponential Moving Average (EMA) also coincides, making it a crucial breakout level to watch. She believes that a sustained move above ₹24,800 could accelerate momentum toward ₹24,980. And any pullback to 24,725–24,750 may offer buying opportunities.
Globally, European markets traded higher, while US stock futures indicate a weak start on Wall Street as growth concerns re-emerged after weaker-than-expected jobs data.
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