The stock market may open with a rise on Monday. Gift Nifty is up 250 points. The market is getting support from the reduction in Iran-America tension and the fall of crude oil. Foreign investment and results will also decide the direction.
Business: The week starting from April 20 can start with a strong start in the Indian stock market. Improvement in global cues, sharp fall in crude oil prices and buying by foreign investors have supported the market sentiment. A rise of about 250 points has been seen in GIFT Nifty, which is considered to be a sign of positive opening in the domestic market.
According to experts, five big factors will decide the direction of the market this week – geopolitical developments, foreign investment inflow, quarterly results of companies, movement of rupee and technical level.
Relief to global markets due to easing of Iran-America tension
There are signs of reduction in the long-running tension between Iran and America. The new possibility of talks between the two countries has reduced investors’ concerns to some extent. This has created a positive environment in the global markets.
Also, easing of supply concerns related to the Strait of Hormuz and a decline of about 10% in crude oil prices have also given relief to the market. Brent crude has come down to around $90 per barrel, which is a positive sign for an import-dependent country like India.
Market strengthened due to return of foreign investors
The return of foreign institutional investors (FIIs) has emerged as a major support for the Indian market. There has been continuous buying by foreign investors in recent sessions and net inflows of thousands of crores of rupees have been recorded.
Experts believe that if this trend continues then both Nifty and Sensex may see a steady rise. The stability of the rupee against the dollar is also increasing the confidence of foreign investors.
Quarterly results of companies will decide the direction of the market
The direction of the Indian stock market this week will also depend on the fourth quarter (Q4 FY26) results of the companies. The results of Reliance Industries, Infosys, HCL Tech, M&M, Axis Bank, IndusInd Bank and Adani Group companies can have a big impact on the market.
The recent results of the banking sector have given relief to investors. Major banks have reported strong profits, which has boosted confidence in the financial sector. The strength of banking shares is supporting the entire market.
Investors’ confidence increased due to recovery of rupee
The Indian Rupee has strengthened from recent lows and is in a better position against the Dollar. The stock market directly benefits from the strengthening of the rupee because it reduces inflationary pressure and foreign investors see better returns.
Experts believe that if the rupee remains stable in the range of 92-93, then the possibility of a bullish trend in the market may become stronger.
Technical charts are indicating a strong trend
According to technical analysis, Nifty is currently forming a strong base. If Nifty remains above 24,400 level then it can go to 24,800 to 25,000 level.
On the downside, 24,000 and 23,800 levels may act as strong supports. Indicators like RSI in the market are also showing that the overall momentum is gradually turning positive.
Support and resistance levels will be monitored
This week investors will also keep an eye on key technical levels. Support zones in the market will help stop the downside, while resistance zones can limit the upside.
If the market manages to overcome the resistance levels, it could signal the beginning of a new uptrend.
Caution necessary amid global signals
Although there are signs of bullishness in the market, experts are advising investors to remain cautious. Global uncertainty, geopolitical developments and sudden changes in crude oil prices can impact the market.
The brokerage house believes that investors should focus on selected strong large-cap stocks at this time and avoid aggressive investments.
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