What’s driving the market higher?
1. Positive global cues
- Asian markets traded firm, tracking overnight gains on Wall Street.
- Easing concerns around global growth and expectations that major central banks may stay accommodative improved risk sentiment.
- Stability in bond yields also helped equities regain footing.
2. Auto stocks lead the rally
- Automobile stocks outperformed after companies reported healthy monthly sales numbers, indicating resilient consumer demand.
- Two-wheeler and passenger vehicle segments saw particular interest, reflecting optimism around rural demand recovery and festive-season momentum.
3. Broad-based buying
- The rally wasn’t limited to one sector—metals, banks, FMCG, and IT also contributed.
- Midcap and smallcap stocks participated, suggesting improving market breadth.
4. Support from domestic investors
- Continued buying by domestic institutional investors (DIIs) helped offset intermittent foreign investor caution.
- Stable macros and expectations of earnings recovery are keeping long-term investors engaged.
Key levels to watch
- Nifty resistance: 26,300–26,350 zone
- Nifty support: 26,000–25,900 range
A decisive move above resistance could open room for further upside, while failure to hold 26,000 may invite short-term profit booking.
Overall takeaway
The market’s rise reflects a combination of global optimism and domestic strength, especially in autos. However, with indices near key resistance levels, investors may remain selective and stock-specific in the near term.
