Nifty tops 25,900 amid late hour buying, Sensex extends rally to fifth day after recovering from early losses

Nifty, Sensex extend rally to fifth session.

Dalal Street saw a volatile session on November 14 but ended the week on a positive note, with the Nifty 50 and Sensex gaining nearly two percent over the past five sessions. The trade set-up looked weak early in the day as poor global cues threatened to dampen sentiment.

Analysts had expected an NDA win in the Bihar Assembly Elections to support the market, but even as the alliance claimed victory by late morning, the indices continued to trade in the red. In the final half hour, a burst of buying interest lifted the frontline indices back into the green, helping them extend their five-session winning streak.

At close, the Nifty 50 index was at 25,910.05, higher by 31 points or 0.12 percent, while the Sensex index closed at 84,630.96, up 152 points or 0.2 percent.

Most sectoral indices ended in the green, with Nifty PSU Bank leading the gains, rising over one percent. FMCG, pharma, financial services, healthcare, consumer durables, realty and oil and gas also posted modest advances. On the flip side, Nifty IT and metal indices declined, while auto and media closed nearly flat.

Ahead of the Bihar election results, analysts had noted that the Street had priced in the continuation of the NDA government. "The market reaction to the election results will be only temporary, whatever the results might be," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. "The medium to long-term trend of the market will be dictated by fundamentals, particularly the earnings growth. On this front there is room for optimism as indicated by prospects of robust GDP growth and improving earnings growth."

The derivatives setup for today's trade had reflected a mildly bullish undertone. Put writers have actively added positions at nearby strikes, while call writers are showing interest at higher levels, suggesting a consolidation phase with an upward tilt. This was reflected in today's performance, as the benchmarks closed with mild gains.

Ahead of the session, a substantial open interest buildup of 95.97 lakh contracts at the 26,000 call strike highlighted it as a significant resistance ceiling, whereas notable put OI accumulation of 72.05 lakh contracts at the 25,800 strike reaffirms a sturdy base of support.

Simultaneous addition in both call and put writing indicates a balanced yet positive outlook, with traders positioning for range-bound movement. "The Put-Call Ratio (PCR) remains in the optimistic band of 1.04–1.34, underscoring the continued bullish bias as market participants hold long positions with confidence," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

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