Stock market opening: Will Sensex, Nifty continue market rally today?

As trading resumes on Monday, stock markets are likely to open on a positive note. The momentum seen last week may carry forward, helped by strong global cues, a better-than-expected policy move from the Reserve Bank of India (RBI), and signs of progress in India-U.S. trade talks.

As per Gift Nifty futures, the Nifty50 is expected to open above Friday’s close of 25,003.05. The futures were trading at 25,182 around 8:35 am, suggesting a stronger start to the new trading session.

The benchmark indices – the Nifty 50 and the BSE Sensex – both gained nearly 1% on Friday. This rally came after the RBI surprised markets with a 50 basis points (bps) cut in the repo rate, more than the 25 bps that many expected. The central bank also announced a 100 bps cut in the cash reserve ratio (CRR), which is likely to support liquidity in the system and boost lending by banks.

These measures have raised hopes that the RBI is taking steps to keep the economy on a growth path, especially at a time when many are watching inflation and global trends closely.

SUPPORT FROM GLOBAL MARKETS

Positive signs from international markets also helped. The MSCI Asia ex-Japan index rose 0.5% in early trade on Monday, taking cues from Wall Street gains on Friday. A strong U.S. jobs report eased worries about slowing economic growth in the world’s largest economy. Following the report, U.S. treasury yields moved up, showing growing investor confidence.

At the same time, Indian and U.S. officials are continuing talks to reduce trade tariffs in key areas such as agriculture and the auto industry. According to government sources, both countries are working to reach a deal before a July 9 deadline.

KEY LEVELS TO WATCH

“We could expect Nifty to gain support between 24,970 and 24,900 and face resistance near 25,200 and 25,280 in the next market session,” said VLA Ambala, Co-Founder of Stock Market Today. “This week, the pharma, metal, financial services, consumption, and energy sectors could perform well. So, I recommend adopting an overweight position in these sectors,” she added.

Both foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) were active buyers on Friday. FPIs bought Indian shares worth Rs 10.1 billion (around USD 118 million), while DIIs invested a much larger amount – Rs 93.42 billion. This strong interest from large investors adds to the confidence that the rally could continue, at least in the short term.

STOCK-SPECIFIC MOVES AND SECTOR OUTLOOK

Some market experts have pointed to real estate and midcap stocks as areas showing strong technical indicators.

“We have been repeatedly recommending realty stocks from the past couple of weeks, and it is performing as per our expectations. It has now given a breakout from a Rounding Bottom Formation, which further boosts our confidence to remain bullish with a buy-on-dips approach,” said Aditya Gaggar, Director at Progressive Shares.

He also pointed out that certain mid and small-cap stocks are showing strength. “From the Mid and Smallcaps segments, several stocks have given a breakout, namely PayTM (Inverted Head and Shoulder), PB Fintech and SBI Card (Rounding Bottom),” he added.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)