The Indian stock market opened to a strong rally on Monday morning, marking a significant rebound after two consecutive sessions of sharp losses last week. This positive momentum comes on the heels of the unexpected announcement of a ceasefire between India and Pakistan following weeks of elevated geopolitical tensions, including the tragic terror attack in Pahalgam. Despite reports of brief violations shortly after the ceasefire was declared on Saturday evening, Sunday night remained largely calm, and the Indian Army confirmed a peaceful night on Monday morning.
The Bombay Stock Exchange’s Sensex opened 1,500 points higher, gaining over 2%, while the Nifty 50 surged by 500 points within the first 15 minutes of trade. By 10:05 AM, Sensex had soared 2,200 points and Nifty had jumped 700 points, underscoring the market’s resilience in the face of regional conflict.
Technical Indicators Offer Mixed Signals
Vaishali Parekh, Vice President—Technical Research at Prabhudas Lilladher, offered her analysis of current market trends. According to Parekh, the Nifty 50 index faces immediate support at the 23,800 level after closing just above 24,000 in the previous session. However, a decisive movement beyond the 24,400 resistance level would be required to confirm a bullish breakout. She noted that the index recently dipped below its 200-period moving average at 24,050, which weakened market sentiment. Until a clear breach above 24,400 occurs, the outlook remains cautious.
The Bank Nifty also experienced intense volatility, opening near the 53,600 mark and closing at the same level, down 770 points from its previous close. The key banking index fell below the critical 54,000 support zone and now finds its next major support at 52,000. The expected trading range for Bank Nifty today is 53,400 to 54,600.
Vaishali Parekh’s Top Three Stock Picks
As part of her daily recommendations, Vaishali Parekh identified three stocks poised for potential upside. These include:
Protean eGov Technologies – Recommended as a buy at ₹1269, with a target price of ₹1320 and a stop loss at ₹1230. The company’s digital governance initiatives position it well in a growing public infrastructure sector.
MMTC – Suggested as a buy at ₹52, with a target of ₹56 and a stop loss at ₹50. The state-run trading company stands to benefit from improving commodity prices and stable government policy outlooks.
GRSE (Garden Reach Shipbuilders & Engineers) – Recommended as a buy at ₹1799, with a target of ₹1900 and a stop loss at ₹1730. The shipbuilding PSU could see tailwinds from increasing defense sector orders in light of heightened security considerations.
Global Trends Also Buoy Sentiment
Adding to the domestic optimism was the news of a breakthrough in trade negotiations between the United States and China. The two economic powerhouses announced substantial progress toward reducing their trade deficits, helping calm global markets. US Treasury Secretary Scott Bessent stated that the talks were productive and brought renewed hope for de-escalation in the ongoing tariff war.
Asian markets responded positively to the news. Equity markets in Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Wellington opened in the green, further supporting bullish sentiment. Tokyo remained flat, while US futures pointed to a strong open later in the evening. The dollar strengthened, and oil prices rose on expectations that easing geopolitical tensions would boost demand.
Although the ceasefire has introduced a sense of relief in both political and market circles, the overall sentiment remains cautiously optimistic. With technical indicators suggesting resistance levels that need to be decisively breached, investors are advised to tread carefully while leveraging the current momentum. Vaishali Parekh’s stock recommendations offer strategic entry points for those looking to capitalize on the post-ceasefire rally.
