Nifty Reclaims 25,000 As Financials, Tech And Healthcare Stocks Lead Rally

Indian equity markets ended higher for the third session, with the Nifty reclaiming the 25,000 mark. Financials, technology, and healthcare stocks led the gains. 

On Monday, the Sensex closed 582 points higher at 81,790, while the Nifty 50 ended up 183 points at 25,077. Broader markets mirrored the optimism, with the Nifty Midcap index rising 0.8% and the Smallcap index gaining 0.3%.

Stock Moves

Sectorally, barring FMCG, metals, and media, the rest of the indices ended in the green. 

Financials led by Shriram Finance, Axis Bank, and IDFC First Bank saw strong buying after lenders such as AU Small Finance Bank, Kotak Mahindra Bank, and Bajaj Finance posted strong operational business updates for Q2.

Hospital stocks, such as Max Healthcare (+7%), Apollo Hospitals (+3%), and Fortis Healthcare (+8%), ended higher after the government overhauled the Central Government Health Scheme (CGHS), revising rates for nearly 2,000 medical procedures. The new rates will come into effect from October 13.

Additionally, Fortis received a boost after IHH Healthcare received approval from the Securities and Exchange Board of India to proceed with the Open offer, which would increase its stake in the hospital chain by another 26%.

Vodafone Idea ended 4% lower on reports that the Government may consider a one-time settlement of dues and interest worth billions of dollars from the debt-laden telecom company. Also, the Supreme Court deferred the hearing in the AGR case to next week. 

And Aditya Birla Life shares ended 7% higher after a huge block deal. Reports suggest Flipkart was looking to exit via 6% stake sale. 

Markets: What Next?

Manjushreee Sharma of Equity Guru noted that after a strong recovery from recent lows, Nifty has successfully reclaimed key moving averages on the intraday chart. The price is trading above both the 20-day Exponential Moving Average (EMA) and the 50-day EMA, indicating a clear shift in momentum towards the upside. The 200-day EMA is flattening, indicating that the downward pressure is easing. 

Additionally, the index has formed a higher high–higher low structure, suggesting continued buying interest on dips. The Relative Strength Index (RSI) is currently hovering near the 68 mark, indicating strength without yet entering the overbought zone. Sharma added that as long as Nifty sustains above 24,950–25,000, the near-term trend remains positive. A decisive breakout above 25,100 could open the gates for 25,250–25,300 levels. 

She is bullish on the Nifty, with targets of 25,250, 25,300, and 25,500, and a stop-loss below 24,880. The support is between 24,950 and 24,900.

Globally, European markets traded mixed, while US stock futures indicate a positive start on Wall Street.

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

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