Delhi Election Results: How will Indian stock market move after BJP’s victory? Key technical levels for Nifty, Sensex | Stock Market News

Delhi Election Results: After the stellar show by the Bhartiya Janata Party (BJP) in the Delhi Assembly Elections 2025, the Indian stock market may react positively when it re-opens on Monday. Indian equities continued their upward momentum for the second consecutive week, with the Nifty50 advancing by 0.33% to close at 23,559.95 and the BSE Sensex rising 0.46% to settle at 77,860. 

The positive sentiment was largely driven by improved domestic outlook post the Union Budget 2025 and a temporary suspension of import tariffs on Canada and Mexico by U.S. President Donald Trump. 

However, subdued Q3 corporate earnings, persistent weakness in the Indian rupee, and sustained FII outflows weighed on the market. From a technical perspective, the Nifty50 reclaimed its position above the 21-day EMA, with RSI holding above 50 and MACD signaling a bullish crossover, highlighting sustained market strength. 

The index decisively broke above its previous swing high, with the formation of a bullish engulfing pattern on the weekly chart, signaling further upside potential. On a related note, gold prices surged to new all-time highs both domestically and internationally, fuelled by uncertainties surrounding U.S. tariff disputes with Canada, Mexico, and China. Institutional activity showed net FII outflows of ₹8,852 crore in the cash segment, offset by strong DII inflows of ₹6,449 crore, providing stability to the market.

Nifty remained volatile throughout the week but managed to close positive for the second consecutive week, sustaining above the 23,450–23,500 zone, signalling a potential bottom reversal. The index continues to trade decisively above the critical 21-day EMA, reinforcing positive sentiment and indicating further upside momentum. 

A move toward the 23,800-resistance level appears likely, while a breach below 23,250 could attract selling pressure, dragging the index toward 23,000. The RBI’s recent 25 bps repo rate cut to 6.25% has enhanced liquidity, boosting investor confidence. Despite short-term volatility, the trend remains positive, supporting a “Buy on Dips” strategy.

Bank Nifty surged 1.32% last week, marking its second consecutive weekly gain and signalling a potential trend reversal from its prolonged downtrend. The index decisively closed above its 21-day EMA and a three-week consolidation range, confirming a shift from a negative to a positive trajectory. 

As long as Bank Nifty sustains above 49,700, it is likely to move towards 50,700, whereas a breakdown below this level could lead to a decline towards 49,200. A buy on dips strategy is recommended focusing on accumulating positions near support levels for potential upside opportunities.

From a technical standpoint, Nifty successfully held its immediate support i.e. 23,400 at the 20-day exponential moving average (DEMA) on Friday. The recent swing low of 23,200 remains a crucial support level to sustain a positive positional bias, while the 23,900 mark serves as a major resistance. A breakout above this level could drive the index towards 24,200.

Amid these developments, investors are advised to focus on stock selection based on sectoral trends. Most key sectors, except FMCG, are showing rotational participation. However, caution is advised in the midcap and smallcap segments, as broader market volatility remains a concern.

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