The Indian stock market is set to enter Samvat 2083 on a bullish note, with the Nifty 50 heading into the special Muhurat Trading session after extending its winning streak to seven consecutive sessions,
During last week, the Nifty 50 surged 8.58%, marking its strongest weekly performance since February 2021, and the rally supported the index, reducing its year-to-date losses to 4.21%. At its lowest point this year, the index had fallen nearly 15% but has since recovered close to 13% from its yearly low.
The market recovery has largely been supported by the return of overseas investors, who aggressively bought domestic equities, pouring in a massive ₹45,970 crore in November so far. This marked a strong turnaround after foreign investors remained net sellers for two consecutive months.
The shift in sentiment towards Asia’s third-largest economy comes amid a correction in global AI-linked stocks, as concerns over a potential move by the US Congress, led by Democrats, to impose restrictions on the massive expansion of data centres in the US triggered a sell-off in previously favoured chip and memory stocks across Asia.
Investors have long been concerned about the elevated valuations of AI-linked stocks, while the massive capital expenditure spree has raised questions about the sustainability of returns on these investments.
The aggressive spending has also raised concerns about whether cash-rich technology companies can continue to fund their ambitious AI infrastructure plans without putting pressure on their balance sheets and future profitability.
Nifty outlook: Key resistance and support levels to watch today
Ponmudi R, CEO of Enrich Money, said the tone in today’s session remained constructive, with domestic liquidity and renewed foreign buying continuing to anchor sentiment even as global cross-currents remained elevated.
He said the Nifty 50 had decisively broken out of its previous consolidation range, closing well above the psychological 25,000 mark. Immediate resistance is placed in the 25,150–25,200 band, followed by 25,500. A sustained move above these levels could open the path towards 25,800–26,000, he said.
On the downside, support holds firm at 24,800–24,600, a zone that has repeatedly attracted fresh buying through the week.
Ponmudi said momentum remained strongly positive following the historic weekly advance, though the sharp and rapid nature of the rally leaves room for selective profit-booking at current elevated levels, a dynamic worth watching even within a single symbolic trading hour.
Global AI sell-off tests resilience as domestic inflows support Indian markets
Ponmudi said global markets continued to face considerable volatility, as a sweeping sell-off in AI and semiconductor stocks, triggered by concerns that a Democratic midterm sweep could slow data-centre and AI infrastructure expansion, wiped out the entire post-election rally.
Notably, Indian markets have thus far shown real resilience to this global AI-trade unwind, continuing to rally even as Wall Street and parts of Asia reeled from the chip-stock rout.
He said this divergence underscored how steady domestic inflows and a reversal in FII trends were currently providing a meaningful cushion against international volatility, although the risk of external spillovers could not be entirely ruled out.
Given this backdrop, Ponmudi said India continued to stand out as one of the few major markets globally demonstrating both liquidity strength and directional clarity, even as developed markets navigated a sharp reassessment of AI-related valuations.
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