Nifty50 near key resistance range? How Anil Singhvi views market bounceback

Domestic equity benchmarks rose sharply on Monday amid a broad-based bounceback in the market, on track to close higher after three straight sessions of losses. IT, financial and energy shares were at the forefront of the rebound on Dalal Street. At the day's high, both main gauges rose as much as 0.6 per cent. The Sensex jumped 538.2 points to touch an intraday high of 83,754.5 while the Nifty50 added 161.2 points to touch 25,653.5 on the upside during the session. Will the rally sustain?

Anil Singhvi decodes Nifty50 moves on Dalal Street now

Zee Business Managing Editor Anil Singhvi pointed out that the renewed buying interest on Dalal Street is aided by improved investor sentiment on the back of Goldman Sachs's move to upgrade its rating for India with an end-2026 Nifty50 target of 29,000.

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The foreign brokerage's target implies a nearly 14 per cent upside in the benchmark index from Friday's close. The upwards rating revision -- to 'overweight' -- comes roughly a year after it downgraded its outlook to 'neutral' citing slowing economic growth and corporate earnings that would dent investor sentiment.

According to Goldman Sachs, the monetary and fiscal policies in India are supporting the economy's growth momentum, with GST rate cuts and lower interest rates seen strengthening demand in the economy over the next two years.

What's driving gains on Dalal Street? Anil Singhvi weighs in

The market wizard also highlighted that easing FII outflow-related pressure and continued DII inflows are supporting the market, with strong gains expected on Wall Street later in the day.

On Friday, FIIs net bought Indian shares to the tune of Rs 4,581 crore while DIIs' purchases amounted to almost Rs 6,675 crore, according to provisional exchange data. That allayed some investor concerns about FIIs' persistently bearish take on Dalal Street. For the month, FII outflows are at Rs 1,633 crore while DII inflows stand at 16,678 crore, according to the data.

Meanwhile, a key development in the US sent Dow futures rising, with investors pinning hopes on the end of a historic US government shutdown in the coming days. On Sunday, a group of Democrats reportedly agreed to move forward without a guaranteed extension of healthcare subsidies to advance compromise legislation aimed at refunding the Donald Trump 2.0 administration.

At 3 pm India time, Dow futures were up 184 points -- or 0.4 per cent -- at 47,269.

Will Nifty50 and Nifty Bank sustain intraday gains?

The market guru also pointed out that Monday's trend has been strong, with the index nearing its key resistance range.

The Nifty50 is quite close to its upper range of 25,675-25,800, with support now expected around the 25,500-25,575 band, he said.

He also said that Nifty Bank continues to be strong, having already rallied more than 300 points on Friday. The banking index's sustained move above the 58,000 mark is a positive signal, with strong support now expected in the 57,650-57,875 band, he said.

The market guru expects a profit-booking zone in the Nifty Bank in the 58,250-58,400 band, as the banking index continues to lead the market.

Crucial levels to watch out for

According to the market guru, the Nifty and the Nifty Bank must take out the levels of 25,550 and 58,000 on a closing basis in order to signal an end to their weakness.

Closing levels above 25,675 and 58,250 will be ideal for the Nifty and the Nifty Bank, respectively, said Singhvi.

On the flipside, weakness may increase if the indices close below 25,475 and 57,550 levels, respectively, he added.

Buying to return in IT stocks?

After last week's weakness, the Nifty IT has recovered from oversold levels, he said.

IT and metal stocks led the losses in the market last week -- a second straight weekly loss -- dragged by persistent FII selling and weak global sentiment.

How Anil Singhvi views midcap and smallcap stocks now

According to Singhvi, both segments are yet to signal a clear trend.

Action remains largely stock-specific, driven by quarterly results, he said, referring to midcap and smallcap stocks.