Stock market today: Sensex surges 700 points, Nifty 50 tops 26,000 — Can key indices climb to a new peak?

Stock market today: Indian stock markets moved higher on Monday, with the Sensex and Nifty rebounding after Friday’s break in their six-day winning run. A softer-than-expected US inflation data boosted hopes of two more rate cuts in 2025, which along with a thaw in tensions between the US and China, boosted investor sentiment on Dalal Street today.

The S&P BSE Sensex jumped 700 points to surpass the 84,900 mark, while the NSE Nifty 50 gained more than 200 points to move past 26,000.

The US consumer inflation cooled in September, strengthening expectations that the Federal Reserve will announce rate cuts at its policy meetings in October and December. Lower US interest rates generally enhance the attractiveness of emerging markets like India for foreign investors.

Meanwhile, senior officials from the US and China have agreed on a preliminary framework for a trade deal, which Presidents Donald Trump and Xi Jinping are expected to review later this week, according to media sources.

“The Nifty index ended the week on a flat note, gaining 85 points after a strong upward move. On the weekly timeframe, the index corrected nearly 311 points from its high, making it a volatile session and suggesting a phase of consolidation after recent sharp gains. Nifty witnessed temporary profit booking, slipping below the 25,800 mark and eventually closing at 25,795.15, indicating a pause in momentum as traders booked profits at higher levels,” said Hardik Matalia, Derivative Analyst at Choice Broking.

Key technical levels to watch out for in near term

Sensex

According to Anshul Jain, Head of Research at Lakshmishree, the Sensex has successfully retested its previous all-time high of 84,089 and is now showing a strong follow-through move on the upside, crossing the prior session’s high of 84,707.44 with a positive gap.

Jain said, “A sustained close above 84,700 will confirm continuation of the uptrend, opening room for an initial move toward the 87,000 zone. Price action shows clear bullish strength, and momentum indicators like RSI along with short- and medium-term moving averages remain firmly aligned in favor of the bulls, suggesting that the upside momentum is likely to sustain.”

Nifty 50

Hardik Matalia of Choice Broking believes that a decisive breakdown below 25,670 could accelerate weakness towards 25,500, and further down to 25,400.

“Conversely, on the upside, immediate resistance is seen at 25,950, followed by 26,000 and 26,100. A sustained move above these levels would confirm the continuation of the bullish trend, while failure to cross them may keep the short-term trend range-bound,” Matalia said.

Support: 25500 - 25300

Resistance: 25800-26000

Bias: Sideways to Bullish

Matalia further suggested investors to adopt a ‘buy on dips’ strategy, while remaining cautious. “Given the current market structure, adopting a 'buy-on-dips' approach remains favourable. However, traders are advised to stay cautious and maintain strict stop-loss levels to manage risk effectively in this volatile trading environment,” he added.

Bank Nifty

Bank Nifty ended the week on a flat note, closing at 57,699, after hitting a new lifetime high amid a highly volatile trading week.

The index displayed notable strength by surpassing its previous peak of 57,628, but subsequently witnessed a correction of nearly 870 points from the week’s high, indicating profit-taking at higher levels. The slip below the 58,000 mark suggests temporary consolidation or mild profit booking after a strong upward move.

“A decisive close above 58,000 would reaffirm bullish momentum and open the door for further gains, whereas failure to sustain above this level could invite short-term weakness. Traders are advised to remain constructive yet disciplined, closely monitoring 57,400 on the downside and 58,000 on the upside for cues on the next directional move,” Matalia added.

Support: 57400-56900

Resistance: 58000-58700

Bias- Sideways to bullish

Matalia recommended investors to remain constructive yet disciplined. “A decisive close above 58,000 would reaffirm bullish momentum and open the door for further gains, whereas failure to sustain above this level could invite short-term weakness. Traders are advised to remain constructive yet disciplined, closely monitoring 57,400 on the downside and 58,000 on the upside for cues on the next directional move,” he added.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.