5-Day Bullish Market Rally: Experts say Nifty must hold 23,800

Domestic equity markets continued their upward streak for the fifth straight session on Monday, with both Sensex and Nifty gaining over 1%, led by strong buying in banking and IT stocks. Positive quarterly earnings and steady foreign fund inflows added further momentum to the rally.

The Sensex jumped 855.30 points (1.09%) to close at 79,408.50, crossing the 79,000-mark for the first time, after hitting an intraday high of 79,635.05. Meanwhile, the Nifty surged 273.90 points (1.15%) to settle at 24,125.55.

Key Levels in Focus: 23,800 and Beyond

According to experts, the Nifty has decisively broken out above the key resistance level of 23,800 after nearly two months of consolidation. This breakout sets the stage for a potential rally towards 24,250 initially, and possibly 24,600 in the near term.

Ajit Mishra, Senior Vice President – Research at Religare Broking, noted that the breakout signals a positive shift in sentiment. Echoing this view, Rupak De, Senior Technical Analyst at LKP Securities, pointed out that Nifty has cleared its previous swing high, indicating rising investor confidence.

“With Nifty now trading above the crucial 24,100 mark, it seems well-poised to target the 24,450–24,500 zone in the short term. On the downside, immediate support is placed at 23,850,” De added.

Resistance, Support, and What’s Next

In its market update, Bajaj Broking highlighted that Nifty is currently testing an immediate resistance zone between 24,200–24,300, aligning with the January 2025 highs. A sustained move above this level could pave the way for further upside towards 24,550 and 24,850.

“The index maintaining levels above the Monday gap area of 23,850–23,903 will help preserve the positive near-term trend. Any dips should be viewed as buying opportunities,” the brokerage said, pegging key short-term support around 23,200.

The recent breakout above 24,000, achieved after three attempts over the past three months, has also boosted sentiment in banking stocks, with the Bank Nifty scaling a new all-time high.

Bank Nifty Leads the Charge

Bajaj Broking emphasized that the Bank Nifty has broken out of a seven-month trading range between 48,000 and 54,450, retracing its five-month correction in just two months — a sign of strong underlying strength.

The brokerage now expects the Bank Nifty to move towards 56,000, with the 53,500–54,000 breakout zone likely to act as a solid support in the short term. Additionally, the Bank Nifty/Nifty ratio has moved out of its consolidation range, pointing to sustained outperformance of banking stocks relative to the broader market.

Disclaimer: Investors are advised to consult certified financial experts before making any investment decisions.