Indian benchmark equity indices surged in their best session in eight weeks on Monday, driven by gains in energy heavyweights Reliance Industries and ONGC as oil prices climbed, and a rebound in beaten-down financials also helped. The blue-chip NSE Nifty 50 index closed 1.80% higher at 21,737 and the S&P BSE Sensex ended 1.76% higher at 71,941 in their biggest one-day percentage gains since December 4. Analysts expect continued volatility in the days to come as the market awaits the Budget and FOMC meeting outcomes. However, overall sentiment remains optimistic. Call writers have positioned themselves in the 21,700-21,800 range for Nifty, suggesting a trading range between 21,500-21,800 with a strategy of buying on dips and selling on rallies.
US main stock indexes had a sluggish start on Monday. The Federal Reserve’s rate decision and big-ticket tech earnings are expected to set the tone for Wall Street. Disappointing forecasts from Intel and Tesla last week raised concerns about overvaluation of momentum stocks. European equities started the week on a subdued note after hitting two-year highs. Losses in financial stocks partially offset strong gains in the energy sector. Nifty ended with a long bull candle on the daily chart, indicating a potential upside breakout. Some stocks are showing a bullish bias, while others are signaling weakness ahead. ONGC, RIL, HDFC Bank, and ICICI Bank were among the most active stocks in value terms. ONGC, HDFC Bank, and Tata Steel were among the most traded stocks in volume terms. Market breadth favored bulls as more stocks ended in the green than in the red.
