Bullish momentum to sustain for Indian stocks on global rally

Indian stock markets are likely to sustain the momentum on Thursday as well at open, amid positive global cues. Post the US midterm verdict, where the Democrats gained handsomely, US stocks surged sharply. The positive sentiment is reverberating across global markets. The Asian and Australian stocks are up in early deal.

Gift Nifty at 24,300 signals a gain of another 300 points at open for Nifty.

However, analysts said one has to wait how the US situation pans out, especially after the US President, Donald Trump signalled emphatically using his Veto Power.

Analysts expect the momentum to continue this week, thanks to the return of foreign portfolio investors, who stopped up buying aggressively in the last few days. On Wednesday they bought over ₹7,280 crore worth shares in the secondary market.

Besides, corporate results will also anchor market direction.

Osho Krishan, Chief Manager - Technical & Derivatives Research, Angel One., said the winning streak extended into its fifth consecutive session, highlighting the underlying bullish undertone and a meaningful improvement in overall market sentiment. The participation of the broader markets, coupled with sectoral rotation, has emerged as a key catalyst supporting the ongoing rally. Additionally, improving global cues and renewed foreign institutional investor (FII) inflows into Indian equities have further strengthened the positive momentum.

Technically also the market turned positive, according to experts.

“Overall market bias remains positive, supported by Nifty’s five-session winning streak, a close above its 200-day EMA and improving momentum across the broader market. Bank Nifty has also reclaimed its 50-day EMA, adding to the positive undertone. However, resistance from higher moving averages and the falling trendline in Bank Nifty will be important to watch. Sustained buying participation could further strengthen the ongoing recovery,” said Hitesh Tailor, Technical Research AnalystatChoice Broking Private Limited.