Sensex, Nifty rally for 4th day; Nifty hits 5-month high above 24,700

Indian equity benchmarks continued their upward march on Monday, extending the winning streak to a fourth straight session. The Nifty closed at a five-month high, settling above the 24,700 mark, while the Sensex surged in tandem, reflecting broad-based buying across sectors.

Nifty crosses 24,700; Sensex follows

The Nifty50 index climbed steadily through the day, finally ending above 24,700 for the first time in five months. The Sensex, too, posted solid gains, though the exact closing points were not immediately confirmed by exchange data at the time of writing.

Market participants attributed the rally to a mix of positive global cues and domestic buying interest. However, officials and analysts have not yet confirmed specific sectoral drivers or the exact contribution of foreign versus domestic institutional flows.

Fourth day of gains: What's driving the momentum?

The current streak marks a notable shift in sentiment after a period of consolidation. Over the past four sessions, the indices have added meaningful value, with the Nifty reclaiming levels that had last been seen earlier in the year.

Traders said the momentum was supported by expectations of continued economic resilience, though no fresh policy announcements or earnings surprises were reported on Monday. The broader market, including midcap and smallcap stocks, also showed strength, suggesting the rally was not limited to heavyweight names.

Investor sentiment remains upbeat

Market watchers noted that the sustained uptick has improved risk appetite. The advance-decline ratio on the National Stock Exchange remained positive, indicating that gains were spread across multiple counters.

However, some analysts cautioned that the market could face resistance at higher levels, given that valuations have become richer after the recent run. They advised investors to keep an eye on global interest rate trends and crude oil prices, which could influence the trajectory in the coming days.

Technical levels to watch

On the technical front, the Nifty's close above 24,700 is seen as a positive signal. The next key resistance is placed around the 24,800–24,900 zone, while support is expected near 24,500.

Options data suggests that traders have built up positions anticipating further upside, though volatility is likely to remain a feature given the global backdrop.

What happens next?

With the earnings season largely behind, market focus will now shift to macroeconomic data and global cues. Investors will watch for any developments on the US Federal Reserve's rate path and domestic inflation numbers, which could set the tone for the near term.