Sensex gains 1,000 pts, Nifty above 23,700: Easing crude oil ‌prices among key factors behind market rally

The broader market also remained firm, with the Nifty Smallcap 100 and Nifty Midcap 100 rising 0.4 percent and 0.7 percent, respectively. 1) Easing crude oil prices: Brent crude traded flat at around USD 105 a barrel after declining 7 percent in the previous session. Talks between Iran and Qatari mediators raised hopes of an end to the US-Israeli war with Iran. "Investor sentiment has found support in a sharp correction in global crude oil prices, offering some relief on the macroeconomic front.

Brent crude has retreated towards USD 105 a barrel as Qatar-mediated exchanges between the US and Iran have raised hopes of progress towards ending the conflict and restoring normal energy flows through the Strait of Hormuz," Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, a Research Analyst firm, said. 2) FII buying: Foreign portfolio investors (FPIs) were net buyers in the Indian markets on Monday, pumping in Rs 3,114.68 crore.

"Circumstances are ideal for the continuation of the ongoing market rally. Decline in Brent crude to USD 104, further weakening of the AI trade, continuing flow of good Q2 results and FIIs turning buyers have potential to accelerate the ongoing rally. The 11.6 percent surge in a mega cap stock in one day is very rare. But this happened in RIL yesterday," V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said.

ArunaGiri N, Founder, CEO, TrustLine Holdings, noted, "Interestingly, FIIs have continued investing in the primary market despite selling aggressively in the secondary market. In October, they sold over $5 billion in the secondary market but invested around half a billion dollars in IPOs up to October 23." 3) Rupee rises: The rupee appreciated 12 paise to 94.72 against the US dollar, supported by falling crude oil prices and foreign fund inflows into domestic equities.

At the interbank foreign exchange market, the rupee opened at 94.68 and strengthened to 94.60 before trading at 94.72 against the greenback, gaining 12 paise from its previous close. 4) Steady earnings: Continued momentum in corporate earnings also supported market sentiment, with several stocks gaining after companies reported their September-quarter results. Marico climbed 4.5 percent after reporting quarterly profit above estimates, supported by lower copra costs and healthy demand.

KRBL jumped 9.4 percent after posting a 51 percent year-on-year rise in September-quarter profit. Trident gained 9.4 percent after reporting an increase in its second-quarter profit. VRL Logistics surged 13 percent after nearly doubling its quarterly profit year-on-year. On Monday, the Nifty and Sensex had jumped 1.7 percent each to close at their highest levels in more than five weeks and eight weeks, respectively.

Ponmudi R, CEO of Enrich Money, said "Nifty 50 opened with a strong gap-up near the 23,582 mark, extending its recent recovery and reclaiming the 100-day EMA, indicating further improvement in the short-term technical structure. A sustained move above 23,600 level, supported by continued buying participation, could extend the upward momentum towards 23,800–24,000." "On the downside, 23,500–23,450 is likely to act as the immediate support zone, coinciding with the opening bullish gap area, followed by the 23,200 mark.

Holding above the immediate support zone will be important to sustain the ongoing recovery and maintain positive momentum. The RSI has improved to around 63, indicating strengthening bullish momentum," he added.