Sensex, Nifty log best session in four years: Key risks to the rally, investor wealth and more 

Sensex and Nifty logged their best session (in percentage terms) in four years on Monday as the ceasefire between India and Pakistan turned sentiment positive on Dalal Street after two sessions.  Sensex zoomed 2,975 pts or 3.74% to 82,429 (a seven-month high) and Nifty rallied 916 pts or 3.82% to 24,924. The rally made investors richer by Rs 16 lakh crore today. 

The short-term trend, according to analysts looks positive but despite a stellar rise in benchmark indices today, the market could could face challenges in the near term. 

The ongoing Q4 earnings season has been tepid and future results could cast an effect on the trajectory of the market. 

Vinod Nair, Head of Research, Geojit Investments said, "However, while the momentum remains strong, the market may enter a phase of consolidation in the near term as investors await concrete signs of earnings growth. In the meantime, mid & small caps are expected to maintain the optimism in the broad market. "

Profit-booking in the next few sessions and global cues could also negatively affect the direction of the market. 

Vikram Kasat, Head - Advisory, PL Capital said, "With the ceasefire triggering a technical and sentiment-driven rally, the key question remains—can this momentum sustain amid global and domestic uncertainties?"

Aditya Gaggar Director of Progressive Shares said, "With a strong bullish candle, the index has surpassed multiple resistance levels. However, given the sharp rally, a near-term pullback is anticipated, which could present more favorable entry opportunities. The key resistance and support levels are now seen at 25,180 and 24,770, respectively."

Stocks such Infosys (8%), HCL Tech (6.35%),  Tata Steel (6.16%), Eternal (5.68%), Tech  Mahindra (5.36%) and TCS (5.17%) were the top Sensex gainers. Of 30 Sensex stocks, 28 ended in the green. IndusInd Bank and Sun Pharma were losers, falling up to 3.57%. 

 
Market breadth was positive. Of 4254 stocks traded, 3,545 stocks ended in the green. Around 576 stocks ended in the red while 133 stocks remained unchanged.

BSE midcap index rallied 1620 pts or 3.85% to 43,731 and BSE smallcap index zoomed 1951 pts or 4.18% to 48,693 on Monday.

FII-DII data

Foreign institutional investors sold Rs 4358 crore worth of equities on a net basis on Friday, while domestic investors bought Rs 7277 crore of shares, as per provisional NSE data.