Nifty 50 sustains above 24K despite weak trends in Indian stock market. Is Dalal Street preparing for fresh bull run? | Stock Market News

Stock Market Today: Indian markets struggled to maintain momentum today, January 3, after a strong finish over the past two trading sessions. As of 11:00 a.m., both the Nifty 50 and Sensex were trading lower by over 0.8%. Despite the decline, the Nifty 50 managed to hold above the crucial 24,000 level. 

In the previous trading session, the Nifty 50 index crossed its 200-DMA, which technical analysts suggest is a bullish indicator. They believe that if the index sustains above the 24,000 level, it could potentially move towards the 24,500 mark.

Rupak De, Senior Technical Analyst at LKP Securities said, “The Nifty has moved above the 200-DMA after several failed attempts in recent sessions. Additionally, the index has crossed above the 21-EMA on the daily timeframe, confirming a bullish trend. The RSI is also in a bullish crossover. The index appears to be a ‘buy on dips’ candidate following a strong closing. Support is placed at 24,000, while on the higher end, it may move towards 24,500.”

Echoing similar positive views, Shrikant Chouhan, Head-Equity Research, Kotak Securities, said the short-term market sentiment has turned bullish following the crossing of 24,000.

“It is equally important for the market to sustain above this level. The range of 24,000-23950, which was previously a resistance level, is expected to serve as a strong support zone for short-term traders. On the upside, the range of 24300 to 24,375 could act as crucial resistance zones for short-term traders,” added Chouhan. 

Given the current market trend, buying during intraday corrections between 24,050 and 23,950 is advisable, but a stop loss below 23,800 is a must, he advised.

Nifty, Sensex up over 2% in last 3 sessions

Indian markets started 2025 on a strong footing, driven by optimism over a rebound in corporate earnings for Q3FY25. Strong December sales data from the auto sector and a continued rally in the IT pack propelled frontline indices to register significant gains over the last two trading sessions.

Updates on loan and deposit growth for financial companies also hinted at positive trends for the previous quarter, with brokerages adopting a favourable outlook, leading to a robust rally in financial stocks. Additionally, a 7.3% year-on-year rise in December GST collections to ₹1.77 lakh crore signalled a recovery in consumption activity, further boosting market sentiment.

In the previous trading session, the Nifty 50 reclaimed the 24,000 level, ending 445 points higher (up 1.88%) at 24,188—the index’s biggest intraday jump in six weeks. Similarly, the Sensex closed the session with a gain of 1.83%.

Yesterday’s rally pushed both indices to record gains of 2.3% over the last three trading sessions. Among sectoral indices, Nifty Auto surged 5% in just two sessions, driven by stronger-than-expected sales reported by automakers such as Maruti Suzuki and Mahindra & Mahindra, lifting hopes for a rebound in passenger vehicle sales.

Additionally, Eicher Motors reported robust December sales, triggering a 7% jump in its stock price during Thursday’s session. IT stocks have also been moving higher in recent sessions, supported by optimistic revenue projections for the December quarter and a positive 2025 outlook, as highlighted by global brokerage firms such as CLSA and Citi.

Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, “The uncanny ability of the market to surprise was evident in yesterday’s massive 445-point rally in Nifty. Even though FII buying helped in the rally, at ₹1506 crores net buying, it was not good enough to trigger such a massive 1.8% rally in Nifty. Short covering in certain beaten-down, fundamentally strong stocks like the Bajaj Twins and sharp spurts in auto stocks assisted by better-than-expected December sales numbers have contributed to the rally. Large caps outperforming small caps is a positive signal and may continue.”

“However, it is too early to conclude that FIIs will continue to buy. With the dollar index at 109.25 and the U.S. 10-year yield at 4.56%, the macro construct is not favourable for sustained FII buying. Impressive pick-up in deposit growth augurs well for banking stocks, which are fairly priced,” he added.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.