Defense Index outperformed, Sensex Up By 1200 Points
Satish Chandra Aluri,
Lemonn Markets Desk
Mumbai, May 15, 2025: Benchmark indices posted sharp gains on Thursday, hitting 7-month highs, following positive remarks by U.S. President Donald Trump on a potential trade deal with India. Broader indices, including mid and small caps, also extended their gains.
Markets opened flat and traded in a narrow range until noon, before surging higher after President Trump stated that India had offered a zero-tariff trade deal to the United States. This reignited hopes of a deal being reached soon, significantly boosting investor sentiment.
It was a broad-based rally, with all major sectors posting strong gains. The auto sector led the rally, buoyed by optimism around potential tariff relief.
After Monday's strong rally, markets had been in a holding pattern, waiting for fresh triggers to move higher. Today’s remarks provided that much-needed push, helping the Nifty reclaim the crucial 25,000 level.
On the technical front, the Nifty 50 closed firmly above the 25,000 mark. On the upside, 25,200 is expected to act as immediate resistance, while 25,000 now serves as immediate support."
Shrikant Chouhan, Head – Equity Research, Kotak Securities, adds: "Today, the benchmark indices witnessed a stellar rally. The Nifty ends 395 points higher, while the Sensex was up by 1200 points. Among sectors, all major sectoral indices traded in positive territory, but the Defense index outperformed, rallying 2.62 percent. Technically, after an early morning intraday selloff, the market took support near 24,500/80800 and bounced back sharply.
From the day's lowest point, the market rallied over 600 /1900 points. Additionally, it successfully cleared the 25,000/82500 mark and managed to close above it, which is largely positive. Moreover, there is a bullish candle on the daily charts and an uptrend continuation formation on the intraday charts, indicating a further uptrend from the current levels. We believe that the market's outlook remains positive, but buying on intraday corrections and selling on rallies would be the ideal strategy for day traders. On the downside, 24,900/82200 and 24,750/81800 would act as key support zones, while 25,210–25,300/82800-83000 could serve as key resistance levels for the bulls. However, below 24,750/81800, the uptrend would become vulnerable."
