Stock Market May Witness Sharp Rally on Monday; 26,000 Emerges as a Key Hurdle for Nifty

The Indian stock market may see a strong bullish surge on Monday, with the 26,000 level emerging as a major challenge for Nifty. Over the last three trading sessions, Nifty has consolidated around the 25,600 zone, successfully establishing this level as a solid base. On 3 February, the equity market witnessed a sharp rally, during which Nifty touched an intraday high of 26,340. However, the market failed to sustain at higher levels, and Nifty eventually closed at 25,727. The rally, driven by optimism surrounding the India–US trade deal, initially raised expectations of further upside. Instead, Nifty entered a consolidation phase near 25,600. On Friday, the index closed at 25,694, gaining 51 points. That said, global market sentiment turned positive on Friday evening, which could act as a strong catalyst for Indian equities. As a result, the domestic market may witness a robust rally on Monday. Strong Possibility of a Gap-Up Opening in Sensex and Nifty US markets surged sharply on Friday, supported by expectations of interest rate cuts and other favorable macroeconomic factors. The Dow Jones Industrial Average jumped 2.50%, while the Nasdaq Composite gained 2.20%. A notable rebound in IT stocks was also observed. This positive momentum in global markets is expected to spill over into Indian equities, increasing the probability of a strong gap-up opening. The IT sector is likely to remain in focus, as US technology stocks witnessed a recovery, which could positively influence Indian IT counters. Further strengthening the bullish outlook, GIFT Nifty surged nearly 200 points, touching a high of 25,905, clearly signaling the likelihood of a gap-up opening on Monday Investment in securities market are subject to market risks. Read all the related documents carefully before investing.