Sensex, Nifty extend gaining streak to 6th day: Does this rally have more legs? Here's what experts say

Sensex and Nifty surged more than 1 per cent on Monday amid fresh foreign fund inflows and buying in banking and oil & gas shares.

Benchmark equity indices Sensex and Nifty extended their gaining streak for the sixth consecutive session on Monday, surging over 1 percent on the back of fresh foreign fund inflows and buying in banking and oil & gas stocks.

Sensex jumped 1,078.87 points or 1.40 percent to close at a six-week high of 77,984.38. During the session, it soared 1,201.72 points or 1.56 percent to touch an intra-day high of 78,107.23. The broader NSE Nifty surged 307.95 points or 1.32 percent to settle at 23,658.35, after hitting an intra-day peak of 23,708.75, up 358.35 points or 1.53 percent.

The rally comes as foreign institutional investors (FIIs) turned net buyers, purchasing equities worth Rs 7,470.36 crore on Friday. Positive global cues from US and European markets further strengthened investor sentiment.

Among the key gainers, Kotak Mahindra Bank, NTPC, State Bank of India, Tech Mahindra and Power Grid Corporation rose up to 5 percent.

"Short covering ahead of the monthly F&O expiry later this week fuelled the rally, pushing Sensex past the psychological 78,000 mark in intra-day trade. Renewed optimism from foreign investors, coupled with strong cues from US and European markets, added to the momentum," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Will the rally sustain? Experts weigh in

Analysts remain cautiously optimistic about the rally’s sustainability, citing key technical indicators and upcoming economic data.

Rupak De, Senior Technical Analyst at LKP Securities, pointed out that Nifty has extended its upward move, surpassing the crucial resistance level of 23,600. "The RSI is in a bullish crossover, and the price has been holding above the 50-EMA for the last three sessions. The index is expected to remain strong as long as it stays above the support level of 23,500. A decisive fall below this level may trigger a short-term correction," he said.

However, Vinod Nair, Head of Research at Geojit Financial Services, advised caution, stating that the rally’s sustainability would depend on upcoming macroeconomic data, including PMI figures, corporate earnings for Q4, and global developments, particularly reciprocal US tariffs.

Hrishikesh Yedve, AVP – Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, noted that Nifty has successfully breached the 100-day Simple Moving Average (100-DSMA) and formed a bullish candle on the daily charts, indicating strength. “Immediate support is at 23,510, while short-term resistance lies near 23,810. Given the bullish momentum, traders may adopt a ‘buy on dips’ strategy, though low-risk traders may consider booking profits around the 23,800 level,” he said.

With the indices gaining over 5 per cent in six sessions, market participants will keenly watch upcoming economic cues and global trends to assess whether the current momentum has further legs.

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