Nifty Reclaims 24,600 Led By Buying In Auto, IT Stocks Midcaps & Smallcaps Outperform

Indian equity markets ended higher on Monday, buoyed by upbeat GDP data, global cues, and optimism from commentary at the SCO Summit. The Nifty index reclaimed 24,600, led by buying in auto and IT stocks.

On Monday, the Sensex closed 554 points higher at 80,364, while the Nifty 50 ended up 198 points at 24,625. Broader markets outperformed, with the Nifty Midcap gaining nearly 2% and the Nifty Smallcap index rising 1.6%.

And the retail investor sentiment surrounding the Nifty 50 remained 'bearish' by market close on Stocktwits.

Stock Moves

Sectorally, barring media and pharmaceuticals, all indices ended in the green. Autos (+2.8%) were the top-performing sector on the back of strong August sales data. Bajaj Auto, Eicher Motors, and M & M gained over 3%.

The metals (+1.6%), and the IT sector too saw strong buying (+1.5%), followed by energy (+1.3%), and real estate (+1%)

PG Electroplast shares rallied 4% after its unit inked a ₹1,000 cr MoU with Maharashtra for a greenfield consumer electronics facility under the 'Magnetic Maharashtra' initiative.

Zydus Wellness surged nearly 11% after acquiring UK-based Comfort Click for £239 million via Alidac UK. 

RPP Infra surged 20%, while Premier Energies gained 4% following order wins.  

EV makers Ola and Ather shares soared on hopes of easier magnet access and GST benefits, as well as a product launch by Ather. SEBI-registered analyst FrontWave Research said that Ather stock trades at premium valuations, and they prefer to stay on the sidelines and wait for dips before entering. While its structural story was strong, they recommended letting the valuation cool off before chasing.

Stock Calls

Analyst Mayank Singh Chandel believes that Puravankara is at an inflection point. The stock is forming a base on the daily chart and is approaching a critical zone. A breakout above the trendline, with healthy volume, can trigger the next leg higher. 

Chandel identified support at ₹168–177, which has acted as a strong floor multiple times. Selling pressure tends to slow here, and buyers step in. Unless a major negative trigger appears, this zone is likely to hold, he added. 

Since the 2024 high, the stock has been making lower highs, forming a downward-sloping trendline. The price is now consolidating just below this resistance level. A decisive breakout above this line, backed by volume, would confirm a trend reversal.

Wealth Guru recommended a Buy on Indian Bank with a stop-loss at ₹655, for target prices of ₹668, ₹675, and ₹690.

Markets: What Next?

Globally, European markets traded higher. US stock markets will be closed on Monday for Labor Day. 

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

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