Nifty50 At All-Time High; Sensex Reclaims 86,000 : Why Stock Market Is Rising? Check Technical Outlook

Indian equities surged to historic levels on Thursday, powered by growing expectations of interest rate cuts in the United States and India. While the Nifty 50 scaled a fresh all-time high, the Sensex crossed the 86,000 mark for the first time, signaling strong investor confidence amid improving global and domestic cues.

Sensex Crosses 86,000 for First Time

The Sensex crossed 86,000 for the first time, marking a major milestone for Indian equities. At around 10:15 a.m., it was trading at 85,928.22, up 318.71 points or 0.37 percent, while Nifty hovered at 26,278.40, up 73.10 points or 0.28 percent.
Market breadth stayed positive, with 1,903 stocks advancing, 1,377 declining, and 183 unchanged.

"S&P BSE Sensex index opened on a negative note, but bulls took charge from the very first tick, driving a strong and decisive recovery throughout the session. Sustained buying emerged across heavyweight counters as the index rallied over 1000 points from the day's low, indicating firm support at lower levels and strong bullish sentiment. After facing pressure in recent sessions, today's sharp surge helped the index erase all those earlier losses in one go," stated Motilal Oswal Wealth Management.

Sensex Prediction After Hitting 86K: Technical Outlook By Motilal Oswal

"Sensex also crossed key hurdles with ease.......Bulls now appear well-positioned to push the index towards higher levels in the coming sessions. Now it has to hold above 85300 zones for an up move towards new life high territory 85978 then 86300 zones while on the downside support is seen at 85300 then 85000 levels,"

Nifty At All-Time High After 14 Months; Breaks Past Previous Records

The Nifty 50 index climbed above 26,277 points, surpassing its previous peak from September 2024. The index took nearly 289 trading sessions and about 14 months to reclaim new highs, overcoming uncertainties such as the delay in a US trade agreement and several geopolitical developments.

Over the last five months, the index delivered its strongest phase of performance, buoyed by rising conviction that the US Federal Reserve would cut rates next month-alongside expectations of a matching RBI rate cut driven by cooling inflation, resilient quarterly results, and softening crude oil prices.

Sectoral Moves: Broad Gains With Some Pockets Under Pressure

Market activity was mixed across sectors. Auto, financial services, FMCG, media, metals, pharma, PSU banks, private banks, realty, healthcare, and oil & gas saw mild gains, reflecting broad stability.
However, the IT index remained slightly negative, and consumer durables slipped nearly 0.5 percent, pointing to profit booking in rate-sensitive and discretionary categories.

Why Stock Market is Rising? What's Behind The Rally in Nifty50?

Analysts at Motilal Oswal Wealth Management highlighted that strong global signals, along with robust FII inflows of nearly Rs 5,000 crore, contributed to today's rally.

FII Inflows' Major Contribution To Rally

"Nifty is expected to surpass its record high today, supported by strong global cues and robust FII inflows, with overseas investors purchasing nearly Rs 5,000 crore yesterday," stated Motilal Oswal.

FED & RBI Rate Cut Buzz: US markets rose up to 1 percent overnight, and major Asian indices opened more than 1 percent higher, supported by expectations of a Federal Reserve rate cut on December 10.

Domestically, optimism around a potential RBI rate cut on December 5, backed by multi-year low inflation and easing commodity prices, further strengthened sentiment.
Gift Nifty was trading 50 points higher, while US markets remained closed for Thanksgiving Day.

Cooling Crude Prices Support Indian Markets

Brent crude fell by 0.48 percent, settling at $62.83 per barrel. The decline in oil prices is beneficial for India, as it helps lower import costs and eases inflationary pressures.

Nifty Technical Outlook

Motilal Oswal provided a technical framework for Nifty, noting Nifty (CMP: 26,205) has immediate support at 26,100, followed by 26,000. Resistance is seen at 26,277 and 26,400.

The index must sustain above 26,100 for momentum to extend toward higher resistance zones, with supports gradually shifting upward.

Nifty 50 Derivative View

Motilal Oswal recommended the following derivatives strategies:

Option Buying:

• Buy Weekly Nifty 26300 Call while above 26,100.
• Buy Bank Nifty 61,000 Call while above 59,250.

Bull Call Spreads:

• Nifty: Buy 26350 CE, sell 26450 CE at 30-35 points.
• Bank Nifty: Buy 60,000 CE, sell 60,500 CE at 220-240 points.

Option Writing:

• Sell Nifty 25,500 PE and 26,750 CE with double stop-loss.
• Sell Bank Nifty 56,000 PE and 63,000 CE with strict double stop-loss.

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