Sensex surges 5,560 pts in 5 sessions, reclaims 79,400 level; will it cross 80K soon?

Extending last week's positive momentum, Indian share market started week on a solid note, with benchmark indices BSE Sensex and NSE Nifty50 gaining further by over 1% on Monday. In five sessions, the BSE benchmark Sensex has risen 5,560 points to reclaim 79,400 level, making investors richer by ₹31.2 lakh crore as total market capitalisation of all BSE-listed companies rose to ₹425.83 lakh crore. Similarly, the Nifty50 index added 1,726 points, or 7.7%, to reach 24,125 mark.

On Monday, the BSE Sensex climbed 855 points, or 1.09%, to settle at 79,408, while the Nifty50 jumped 274 points, or 1.15%, to close at 24,126, led by surge in buying across the banking, IT, and auto sectors. The broader markets outperformed the benchmark indices, with the Nifty Midcap100 and Nifty Smallcap100 surging 2.50% and 2.21%, respectively.

Driven by recent rally, the benchmarks have turned positive for the year 2025, up over 1% each on year-to-date (YTD) basis, paring five consecutive months of negative returns since October 2024.

The resurgence in the market is driven by temporary pause on reciprocal tariffs by the U.S. and prospects of negotiations with other countries, which prompted foreign investors to pour money in domestic markets. The forecast of an above-normal monsoon this year also lifted sentiments.

In three trading sessions last week, foreign institutional investors (FIIs) staged a strong comeback by infusing ₹14,670 crore into Indian equities. The renewed buying interest indicates a shift in sentiment amid easing global trade concerns, with exemptions granted to products such as smartphones and computers.

So far in calendar year 2025, FIIs remained net sellers, offloading equities worth ₹1.64 lakh crore, which was compensated by net purchase of over ₹2 lakh crore by DIIs during the same period.

Can Sensex reclaim 80K level?

At the current level, the BSE Sensex is down 7.5% from its all-time high level of 85,978 touched in Sept’24. Given the improvement in sentiments in the backdrop of easing concerns about Trump’s tariffs coupled with fresh buying by foreign institutional investors amid attractive valuations and strong economic fundamentals, the 30-share barometer Sensex is expected to reclaim 80K mark soon, a level last attained in November 2024.  

“Technically, after a positive open, the market successfully cleared the 24,000/79000 mark and also surpassed the 200-day SMA (Simple Moving Average) mark, which is largely positive. We believe that the short-term market texture is bullish but may be overbought; hence, we could see some profit booking at higher levels,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Chouhan opines that 24,200-24,325 and 79,700-80,000 range would act as key resistance areas, while 24,000/79,000 and 23,900/78,700 could serve as crucial support zones for benchmark indices Nifty and Sensex.

“For day traders, as long as the market is trading above 23,900/78,700, buying on intraday corrections and selling on rallies would be the ideal strategy. However, if it falls below 23,900/78,700, sentiment could change, and traders may prefer to exit their long positions,” he said.

Ajit Mishra – SVP, Research, Religare Broking, said the Nifty has finally broken past the key hurdle at 23,800 decisively, after two months of broad consolidation, indicating a potential move towards 24,250 initially, and then gradually higher towards 24,600. “We reiterate our positive outlook on the index and suggest continuing with a “buy on dips” strategy, while acknowledging the possibility of an intermediate pause or consolidation following the recent vertical rally. Traders should align their positions accordingly and avoid adopting a contrarian stance," he said.

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