Domestic Equity Markets Surge: Sensex and Nifty 50 Reach New Heights

India’s key equity indices, the Sensex and Nifty 50, have extended their winning streak for the third consecutive day, reaching new record highs. This surge followed the Reserve Bank of India’s (RBI) decision to maintain the status quo on repo rates and its policy stance during the latest monetary review meeting. Additionally, the RBI revised the GDP growth estimates for FY25 upwards, providing further confidence to investors.

Impressive Weekly Gains for Sensex and Nifty

The NSE benchmark Nifty 50 had its best week since early December, while the Sensex experienced its most substantial weekly gain in nearly two years. This recovery rally was driven by strong domestic buying, which outweighed foreign sales, and was bolstered by political stability after Prime Minister Narendra Modi’s National Democratic Alliance (NDA) secured a narrow victory in the general elections, defying exit poll predictions.

The Nifty 50 advanced by 3.4% over the week, while the Sensex climbed 3.7%, recovering all losses incurred on Tuesday following the election results. On Friday, the Sensex reached a new all-time high of 76,795.31 during the session, closing at 76,693.36, up by 1,619 points or 2.16%. The Nifty 50 ended the day at 23,290.15, up by 469 points or 2.05%, with only two stocks in the red.

Tata Motors: A Buy with Nearly 15% Upside Potential

Vaishali Parekh, a leading technical analyst, has recommended buying Tata Motors, which currently trades at ₹996. She has set a target price of ₹1,100, suggesting an upside potential of 14.90%. According to Parekh, the stock has broken out of a descending channel above ₹947 and surpassed the significant 50EMA level of ₹960, improving its outlook.

“The RSI indicates a trend reversal, signaling a strong buy with substantial upside potential from the current levels. Despite recent underperformance, the stock’s chart looks attractive, with a favorable risk-reward ratio,” Parekh explained. She recommends a stop loss at ₹917.

GHCL: Set for a 17.40% Upside

Parekh also advises buying GHCL, trading at ₹494, with a target price of ₹580, indicating a potential upside of 17.40%. “The stock has recovered from lows near ₹434 and formed a double bottom pattern around ₹475, showing improved bias and strength,” Parekh noted.

“The RSI also indicates a trend reversal, suggesting continued positive movement. Given the favorable risk-reward ratio, we recommend buying GHCL with a stop loss at ₹470,” she added.

Nifty 50 Outlook: Analysts Predict Further Gains

Analysts are optimistic about the short-term prospects of the Nifty 50 index, which closed near its all-time high. Rupak De, Senior Technical Analyst at LKP Securities, stated, “The market remains a buy on dips as long as it stays above 23,000. The index could reach 23,500-23,600 on the higher end. Profit booking might only occur if it falls below 23,000.”

This bullish sentiment suggests that the Nifty 50 could continue its upward trajectory, provided key support levels are maintained.

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