Bulls eye more upside as broad-based rally sends Nifty50 soaring past 24,000; what next?

Domestic equity benchmarks staged a strong show on Wednesday on the back of multiple domestic and global tailwinds. The Sensex skyrocketed as much as 3,008.1 points -- or 4.0 per cent -- to touch 77,624.7 on the upside during the session, while the Nifty50 climbed to as high as 24,025.2, adding 901.5 points -- or 3.9 per cent -- to its previous close. Across-the-board buying powered the surge on Dalal Street, with strong participation across midcap and smallcap segments.

The Nifty Bank zoomed as much as 2,868.3 points -- or 5.4 per cent -- to 55,584.6 amid a rally across rate-sensitive stocks, after the RBI delivered a status quo on the key lending rate as well as the policy stance, as widely expected, while acknowledging Middle East disruptions.

EDITOR'S TAKE | Strong support for Nifty50 at 23,650-23,825, 54,400-54,800 for Nifty Bank

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Zee Business Managing Editor Anil Singhvi pointed out that multiple triggers are powering the broad-based rally on Dalal Street, with investors cheering Israel reportedly backing the US-Iran ceasefire.

He also said that the market rally could strengthen further if crude oil falls below the $90 per barrel mark.

Brent was last seen trading at $94 a barrel levels in afternoon deals in India, having broadly seesawed within a $92-105 range earlier in the day.

Here's a summary of some of the tailwinds for the market at the current juncture:

• RBI policy largely in line with expectations
• Positive news for the Adani group (a US court has accepted Gautam Adani’s petition in the SEC civil securities fraud case)
• No major profit-booking likely
• Easing crude oil rates
• The market is hopeful of FIIs switching to buying

Has the market confirmed a bottom? Here's what market guru Anil Singhvi thinks

The market has confimed the formation of a bottom, as expected, said Singhvi. "We were already confident about it," he noted.

Closing levels of above 23,465 and 54,150 in the Nifty Bank will signal more upside, respectively, he said, adding that it will be even better if the indices take out the 23,865 and 55,550 levels on a closing basis.

What should market participants do now?

The market guru suggested investors hold on to their long positions with stop losses in place and avoid panic-selling their holdings.

"The lower your entry levels, the higher will be your profit potential... The risk lies for late entrants," said Singhvi.

Key levels to track in Nifty50 and Nifty Bank

The market wizard expects strong support for the Nifty50 placed at 23,650-23,825 and for the Nifty Bank at 54,400-54,800.

He has earmarked upside ranges of 24,075-24,300 and 55,750-56,000 for the indices from here on, respectively.

What next?

HDFC Bank, ICICI Bank, Larsen & Toubro, RIL and Axis Bank were the biggest contributors to the gains in both benchmark gauges.

With the easing West Asia tensions and the RBI review now out of the way, investors await the onset of the domestic earnings season due this week for cues.

Tata group IT giant Tata Consultancy Services (TCS) -- the country's largest IT firm -- is scheduled to kick off the earnings season for India Inc by reporting its January-March results on Thursday, April 9.