Markets rally over 1.5% post-Maharashtra elections; experts advise caution amid consolidation

Indian equity indices, the Sensex and Nifty, posted beardown gains connected Monday, surging implicit 1.5 per cent aft the BJP-led alliance's decisive triumph successful the Maharashtra authorities assembly elections. The Sensex soared by 1,130 points to commercialized adjacent 80,330, portion the Nifty gained 372 points to interaction 24,295 successful aboriginal day deals.

Election results boost sentiment

The predetermination result lifted marketplace morale arsenic investors anticipated accrued authorities spending and a propulsion for agrarian economical recovery. Motilal Oswal Financial Services noted that favourable monsoon conditions and argumentation continuity could stimulate economical growth.

Analysts stay cautious

Despite the optimism, analysts astatine Emkay Global Research highlighted imaginable fiscal accent owed to heightened populist spending successful Maharashtra and Jharkhand. The brokerage revised its Nifty December 2025 people to 25,000 from 26,000, citing anemic depletion request and tighter currency flows.

Foreign organization investors (FIIs) person been nett sellers successful caller sessions, but experts expect the inclination to moderate. The wedding play is besides predicted to enactment depletion recovery, but the proposal remains connected prime stocks with robust fundamentals.

Nifty method outlook

The Nifty's bounce disconnected the 50-day elemental moving mean (SMA) and a adjacent supra the little Bollinger Band connected play charts awesome a imaginable for further upside. A vertical rally towards 25,262 is possible, though analysts caution astir absorption successful the 24,030–24,420 range. Supports astatine 23,800 could support upward momentum with intermediate challenges astatine 24,420 and 24,770.

Derivatives action

In the derivatives space, the highest unfastened involvement (OI) for play contracts is astatine 25,000 CE and 23,000 PE, portion for monthly contracts, it stands astatine 25,000 CE and 23,500 PE. Significant OI summation was noted astatine 23,900 CE and 23,700 PE for play contracts, indicating cardinal levels to watch.

FII enactment showed a 29.54 per cent summation successful scale futures agelong positions, a 5.73 per cent simplification successful abbreviated positions, and a crisp emergence successful some telephone and enactment positions, suggesting hedging activity.

While the marketplace has rebounded strongly, analysts impulse caution amid the imaginable for consolidation. Investors are advised to absorption connected resilient, fundamentally beardown stocks to navigate macroeconomic pressures.