The Indian stock market witnessed a significant rally last week, leading the Nifty 50 and the BSE Sensex to achieve their biggest weekly gains in four years. The Nifty 50 surged impressively from 22,397 to 23,350, marking a remarkable rise of 953 points or 4.25%. Meanwhile, the BSE Sensex also soared, climbing from 73,828 to 76,905 and logging a substantial weekly gain of over 3,000 points or 4.16%.
This collective surge was complemented by strong buying in the broader market indices. Specifically, the BSE Small-cap index increased from 43,844 to 47,296, demonstrating a weekly gain of 3,452 points or an astonishing 7.90%. Similarly, the BSE Mid-cap index climbed from 39,062 to 41,831, achieving a weekly gain of 2,769 points, which is approximately 7.10%.
Market analysts agree that this notable uptick stems from a re-emerging confidence in Indian stocks, as highlighted by Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher. She noted, "The Nifty 50 has touched 23,400 for the first time in the last six months, indicating a positive shift in sentiment. The index has established support at 23,000 and is expected to reach 23,800 soon, with prospects of hitting 24,200 once it maintains above this threshold." Parekh’s outlook suggests that the overall market dynamics have turned favorable for continued growth.
As of March 24, 2025, the Nifty's immediate support rests at 23,200, while resistance levels are identified at 23,500. In terms of index dynamics, the Bank Nifty index has exhibited similar bullish tendencies, having regained strength by retesting the previous peak of the 50,600 zone. Analysts estimate that the Bank Nifty's performance could trigger further upward movement, especially if it successfully breaches its significant moving average resistance positioned at 50,960.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, remarked, "The underlying trend of the Nifty 50 index continues to be positive. After overcoming initial hurdles near 23,200 to 23,250, the Nifty appears well-positioned for further gains, targeting 23,800 next." The collective buying interest among institutional investors and positive economic signs are bolstering this positive outlook.
Additionally, some analysts have provided their buying recommendations for the day, emphasizing specific stocks with promising forecasts. Aakash Hindocha, a Technical Analyst at Nuvama Wealth, recommended stocks such as Amara Raja Batteries, with a target price set at Rs 1,220 and a stop loss at Rs 1,011. He also suggested Bharti Airtel, targeting Rs 1,825 with a stop loss of Rs 1,690. Moreover, Hindocha advocated for APL Apollo Tubes, with a planned target of Rs 1,625 and a stop loss of Rs 1,475.
Kunal Bothra, another market expert, supported the positive sentiment with recommendations for NTPC, proposing a target of Rs 366 with a stop loss at Rs 344, and AB Capital, aiming for Rs 195 with a stop loss of Rs 180. Bothra highlighted BSE as another buy with a target set at Rs 5,000 and a stop loss of Rs 4,550.
Furthermore, Nooresh Merani, an Independent Technical Analyst, added insights on Axis Bank and NHPC, marking them as conducive for investment with targets set at Rs 1,150 and Rs 95, respectively. For Nykaa, he set a target of Rs 190 and a stop loss of Rs 167, reflecting confidence in this prominent online retail stock.
To provide additional insights into less expensive stocks, Vaishali Parekh also recommended buying Waaree Energies at Rs 2,337 with a potential target of Rs 2,500 and a stop loss at Rs 2,200; Zomato at Rs 228 aiming for a target of Rs 245 and a stop loss of Rs 223; and Himadri Speciality Chemicals at Rs 441 with a target of Rs 455, advising a stop loss of Rs 430.
Overall, the Indian stock market appears to be on a bullish path, buoyed by strong performances in essential indices and the return of investor confidence. This week’s trading promises to carry this momentum forward as investors position their portfolios to take advantage of prevailing valuations and potential growth. Analysts unanimously advocate a strategy of purchasing on market dips, aware that opportunities for substantial gains remain attractive amidst this rally.
