Indian stock markets post strongest weekly gains in six months driven by IT rally

Domestic benchmark indices Nifty 50 and Sensex recorded their strongest weekly gains in six months, pushed by a rally in IT stocks and better-than-expected quarterly earnings. A selloff in global artificial intelligence shares also encouraged investors to look for value in other sectors. The Nifty 50 climbed 2.8 percent over the week to close at 23,146.15, while the Sensex advanced 3.1 percent to 74,729.27, marking their best weekly performance since April 10. During Friday's trading session, the Nifty gained 0.7 percent, and the Sensex rose 0.6 percent.

Expert Recommendations

Chandan Taparia, Head Derivatives and Technicals for Wealth Management at Motilal Oswal Financial Services, has recommended buying shares of Mphasis, Hindustan Aeronautics, and Indian Hotels Company. For Mphasis, the target price is set at 2,650 rupees with a stop loss at 2,425 rupees. Hindustan Aeronautics has a target price of 5,260 rupees and a stop loss at 4,840 rupees. Indian Hotels has a target price of 815 rupees with a stop loss at 750 rupees. Option data suggests a broader trading range between the 22,700 and 23,500 zones, with an immediate range between 22,900 and 23,400 levels. The Nifty must hold above the 23,100 zone to move up toward 23,250 and 23,350 zones, while support is seen at 23,000 and 22,900.

Context

Stock market indices regularly fluctuate based on quarterly corporate results, global trends, and sectoral shifts like the recent rotation away from global tech stocks. Financial analysts use technical indicators such as open interest, moving averages, and support levels to suggest trading ranges and stop-loss limits for investors.