Nifty tops 25,100, Sensex opens gap-up as bulls extend rally; all sectors in green

Nifty 50 and Sensex settled over one percent higher in the previous session, as the RBI's policy actions gave the bulls a fresh burst of momentum.

Domestic indices Nifty 50 and Sensex saw a gap-up open in trade on Monday, June 9, as the bulls extended their positive momentum following the Reserve Bank of India's surprising policy actions, along with strong cues from global markets.

At 09:21 am the Sensex was up 323.13 points or 0.39 percent at 82,512.12, and the Nifty was up 108.55 points or 0.43 percent at 25,111.60. About 2,218 shares advanced, which indicated the market breadth was tilted in favour of the bulls, while 634 shares declined, and 170 shares were unchanged.

All sectoral indices traded with gains. The Nifty IT, Nifty Media, and the Nifty PSU Bank led the gains, while the broader markets also rallied. The smallcap and midcap indices gained around 70 basis points each during the morning deals.

"The monetary bazooka fired by the RBI on Friday will keep the market spirits alive in the near-term. But this is not sufficient to sustain the rally triggered on Friday. More important is the trend in earnings growth. Q4 results indicate better earnings growth for midcaps. But large and small caps continue to struggle," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

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Institutional flows

Foreign Institutional Investors made net purchases worth Rs 1,009 crore, while DIIs were significantly more active, with net purchases of Rs 9,342 crore. FIIs have remained net sellers in 2025 so far, offloading equities worth Rs 1.24 lakh crore. In contrast, DIIs have continued to support the market, with net purchases nearing Rs 3 lakh crore year-to-date.

Global markets

US stocks closed higher on Friday after a better-than-expected jobs report calmed worries about the economy, while Tesla bounced, clawing back some losses from a sharp plunge the previous session. The Dow Jones Industrial Average rose 1.05 percent, the S&P 500 gained 1.03 percent, and the Nasdaq Composite gained 1.2 percent.

Asian stocks opened higher Monday with the US and China set to resume trade negotiations, while positive jobs data in the world’s largest economy eased recession fears. Equities in Japan and South Korea opened higher while contracts for the S&P 500 index were flat after the gauge closed at its highest since February.

Technical levels

According to Om Mehra, Technical Research Analyst, SAMCO Securities, the resistance for Nifty 50 is seen near 25,120, and a sustained move above this could pave the way for further gains in the coming week. "On the downside, support has shifted towards 24,880–24,900, which now acts as a buy-on-dip zone."

India VIX declined by three percent to settle at 14.63. A further cool-off below 13.5 would enhance stability and bolster bullish sentiment.

Options outlook

Options data is reinforcing bullish undertones, with aggressive put writing observed at near-the-money strikes. Meanwhile, call writers are repositioning at higher levels, indicating a shift in sentiment from bearish to bullish.

"The 25,500 strike currently holds the highest open interest on the call side, with 82.20 lakh contracts—marking a notable resistance area. On the put side, the 25,000 strike has seen substantial additions of 65.89 lakh contracts, establishing it as a strong support zone," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

Strategy for investors

The earnings for the current financial year, FY2026, are unlikely to reach mid teens, which is necessary for the market to remain resilient and move upwards.  "The market needs signs of revenue and earnings acceleration to move up. In the absence of such indicators, the present Nifty range is likely to move up marginally to 24,500 - 25,500. Ample liquidity can support the downside but earnings concerns will cap the upside," Vijayakumar added.

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