Sensex Nears 78K, Nifty Above 23,640; Why Indian Market Recorded Longest Winning Streak Since August?

Sensex and Nifty extended their gains for the sixth consecutive day, making it the longest winning streak since late August of last year. On Monday, March 24, Sensex and Nifty gained by over 1% each and even hit intraday highs of 77,843.84 and 23,630.40. Except for slight volatility in Nifty Bank, all other sectoral indices record sharp gains. India's volatility index surged by more than 9%.

Sensex, Nifty:

Sensex jumped by nearly 967 points to hit an intraday high of 77,874.28. The gains are nearly 1.3% on Monday. Stocks like Kotak Bank, NTPC, Power Grid, Axis Bank and Bajaj Finserv were top gainers.

Nifty 50, meanwhile, climbed by 288.5 points to hit an intraday high of 23,638.90. Nifty Midcap 100 and Nifty Smallcap 100 indices surged by over 1.4% and 1.3% respectively. Nifty PSU Bank, Nifty Private Bank and Nifty Financial Services gained by 2.1%, 2.4% and 1.8% respectively. Nifty Oil & Gas, Nifty Metal, and Nifty Media advanced nearly 1%.

It needs to be noted that, Sensex and Nifty have been rising since March 17. Since then, the gaining spree has been for the sixth consecutive session. This is the longest streak since September 2nd to August 20, when the market rose for the tenth consecutive session.

Following the latest gaining spree, Sensex and Nifty recovered significant losses in January and February 2025 month, turning on a positive note. From February 24 to March 24, Sensex zoomed by 3,329.61 points or 4.47%, while Nifty 50 jumped by 1,055.35 points or 4.7% so far.

Why Market Is Rising On Monday?

As per Trading Economics, Indian shares rising for the sixth straight session are boosted by foreign fund inflows amid attractive valuations in large-cap stocks. The BSE Sensex hit a more than six-week high, tracking an upbeat session on Wall Street on Friday, after President Trump suggested some "flexibility" on tariffs. Traders attempted to maintain bullish momentum, supported by strong domestic economic data and hopes that the recent market slump had reached its lowest point after a sharp correction from peak levels. Capping the gains, Indian private sector growth slowed to the least in four months in March, due to softer rises in services sectors. All sectors traded in the green, led by financial services, banking, and tech sectors.

Last week, on March 21, FIIs bought Rs 7,470.4 crore in Indian stock market. On the other hand, DIIs became sellers with the outflow of Rs 3,202.3 crore.

Where is the market headed?

Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investment Services said, the uncanny ability of the market to surprise was evident last week when the Nifty surged by 4.6% in a week. The fact that this happened when globally markets were jittery on fears of Trump's reciprocal tariffs kicking in from April 2nd is important. So, what led to this sudden reversal of trend in the Indian market? Improving macros of the Indian economy and fair valuations have turned FIIs from sellers to buyers.

More importantly, he added, "this has triggered massive short covering leading to sharp spikes in prices. Even though the undertone of the market is bullish investors have to be careful. April 2nd- the reciprocal tariffs day- is looming large and the uncertainty surrounding that is huge. Investors can wait for clarity to emerge regarding the reciprocal tariffs before taking a call on further investment."

Technically, on weekly charts, Shrikant Chouhan, Head Equity Research, Kotak Securities said, "a long bullish candle has formed. On daily and intraday charts, it is holding a higher bottom formation, which supports further upward movement from the current levels. We are of the view that the short-term market texture is bullish; however, due to temporary overbought conditions, we could see some profit booking at higher levels. For traders, the strategy should be to buy around 23100/23200 and keep a stop loss at 22900."

Additionally, Hardik Matalia, Derivative Analyst at Choice Broking said, Nifty opened flat but witnessed a sharp rally of nearly 270 points from the day's low. This price action resulted in the formation of a strong bullish candle on the daily chart, attempting to break the 200-day EMA. A breakout above this level could provide a firm directional move. Key support is positioned at 23,000, and a breakdown below this level could extend the decline toward 22,800-22,500. On the upside, resistance is observed at 23,500 and 23,700, with a decisive close above 23,700 potentially triggering a rally toward 24,000.