Broader markets outperformed, with the Nifty Midcap100 and Smallcap100 rising 1% and 0.7%, respectively.
Sector-wise, autos led the rally, with the Nifty Auto index hitting a 10-month high on expectations of pre-Diwali tax changes and possible GST cuts on essentials. Oil & Gas stocks also extended their gains for a second session as supply concerns eased. Consumption-oriented sectors remained supported by domestic triggers such as tax reforms, monsoon-led rural demand, and festive spending.In the primary market, four IPOs, Patel Retail, Vikram Solar, Gem Aromatics, and Shreeji Shipping, opened for subscription, maintaining activity in the issuance space.
Globally, focus now shifts to UK and Eurozone CPI prints and the US Fed minutes due Wednesday.Traders will also track gaming stocks tomorrow, following reports that the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Online Gaming Bill.
Analysts expect the positive momentum to continue. Siddhartha Khemka of Motilal Oswal pointed to sector-specific relief measures, government policy support, and strong institutional flows as key drivers of near-term optimism.
Rajesh Bhosale of Angel One said intraday dips are being absorbed and advised a buy-on-dips strategy. He expects prices to test 25,150, with a breakout potentially opening the way to 25,670.
Nagaraj Shetti of HDFC Securities sees the Nifty heading towards 25,300 in the short term, with immediate support at 24,850.
Nilesh Jain of Centrum Broking mentioned 24,850 as strong support, while resistance lies near 25,020, which coincides with the 50-DMA. A breakout above this could trigger the next leg of the uptrend towards 25,100-25,300. He added that the 21-DMA at 24,770 remains a key short-term support.
Rupak De of LKP Securities echoed similar levels, saying that as long as Nifty holds above 24,800, sentiment stays positive, with strength increasing on sustained trade above 25,000.
