The NSE Nifty50, one of the two benchmarks of the Indian equity market, is now just 200 points away from hitting the 25,000 milestone. Closing in green for the fourth consecutive session, the NSE barometer gained 187.85 points or 0.76% on Thursday to settle at 24,800.10 while the BSE Sensex jumped 626.91 points or 0.78% to 81,343.46. This is the first time the Sensex has scaled the 81,000 level.
The past few days’ rally was fueled by IT heavyweight TCS kicking off the Q1FY25 earning season on a positive note. The Nifty IT index on Thursday rose 2.22%, ending as the top gainer among the sectoral indices. While TCS surged nearly 3%, Infosys gained 2.2%. Other IT stocks such as Wipro and HCL Tech also advanced. All eyes on Friday will be on the June quarter earnings of Reliance Industries Ltd (RIL), India’s largest listed company which has the highest weightage in the Nifty50 index.
“Markets have been inching higher as expected, driven by rotational buying in heavyweight stocks. We are now eyeing the new milestone of 25,000 in the Nifty,” said Ajit Mishra, SVP- Research, Religare Broking. Nifty50, which hit the 24,000 level for the first time on June 27, has gained 5,000 points or is up 25% in the past one year. Since the lows of election result day (June 4), the index has surged more than 13%.
Weekly options data also highlights that Nifty50 has all the possibilities to hit 25,000 in the coming days as the highest open interest (OI) on the call side was observed at 25,000 and 25,300 strike prices, while on the put side, it was at 24,500 strike price.
Technical analysts also feel the 25K milestone is in sight. “The trend and momentum remain positive, with the index staying above critical short-term moving averages and a positive crossover in the daily RSI. In the short term, the trend is likely to remain positive as long as the index stays above 24,500. On the higher end, the current trend might take the index towards 25,000 in the near term,” said Rupak De, Senior Technical Analyst, LKP Securities.