Market hits new high in massive rally driven by IT giants

New Delhi: Vinod Nair, Head of Research, Geojit Financial Services, says that Indian markets reached new heights with the strong rise due to IT giants.

Signs of improvement in the IT sector led by improved outlook for BFSI in FY2025 positively impacted market sentiments. The strong performance of PSU banking stocks is underpinned by the inherent synergy between their loan portfolio and the current business cycle, he said.

Notable, he said, was the fact that this upward bounce remained resilient amid mixed global cues due to higher-than-expected US inflation and positive jobs data, which tempered expectations of an imminent rate cut by the US Fed.

Kunal Shah, Senior Technical and Derivatives Analyst, LKP Securities, said the Nifty index showed significant strength, achieving a notable breakout on the daily chart as it surpassed the key resistance level of 21,800.

This bullish move positions the index for possible short-term targets of 22,000 and 22,200.

Traders are advised to consider any dip towards the support level as a buying opportunity. The momentum indicator RSI has also provided a buy crossover, confirming bullish sentiment in the market.