Introduction
Monday on Dalal Street holds immense potential. Following the RBI’s surprise 50 bps repo rate cut and CRR reduction, investor sentiment turned distinctly bullish. This bold monetary policy intervention aims to reignite growth in a tepid demand environment. As the markets prepare for the week ahead, it’s crucial to examine the drivers of market momentum. This article outlines the top 10 catalysts likely to influence equity performance on Monday.
1. Analyst Reactions: Confidence Infusion from the Top
Vinod Nair, Head of Research at Geojit Financial Services, stated that the Indian stock market responded positively to the RBI’s aggressive, growth-push policy. The substantial rate cut, along with liquidity support via the CRR reduction, shows the RBI’s intent to stimulate demand and investment. He noted that this move should enable the swift transmission of lower borrowing costs across the economy.
While the RBI retained a neutral policy stance—thus reducing expectations of additional rate cuts—analysts believe the current policy setting sends a strong pro-growth signal. The unchanged FY26 GDP forecast underscores continuing demand concerns, but sectors like banking, real estate, automobiles, and consumer durables are expected to benefit immediately. This policy backdrop is seen as a catalyst for strong market momentum.
2. U.S. Markets: Rebounding on Jobs and Tech Recovery
Wall Street closed higher on Friday after a stronger-than-expected jobs report helped ease fears of an economic slowdown. The Dow Jones surged 442.88 points (1.05%) to 42,762.62. The S&P 500 rose 1.03% to close above 6,000 for the first time, and the Nasdaq gained 1.20% to reach 19,529.95. Tesla also recovered some of its lost ground from the prior session, adding to the tech-driven rally.
These gains suggest a supportive global environment for Indian equities, reinforcing bullish market momentum.
3. European Markets: Riding the U.S. Tailwind
European equities continued their upward momentum for a second consecutive week. The STOXX 600 added 0.3% on Friday, ending the week with a 0.6% gain. Optimism was fueled by the positive U.S. labor report and easing concerns over global trade tensions. This bodes well for Indian markets as correlated sentiments can amplify domestic rallies, boosting investor risk appetite and sustaining market momentum.
4. Technical View: Nifty Signals Upward Breakout
According to Rupak De, Senior Technical Analyst at LKP Securities, Nifty has given a strong breakout above the 25,000 level, signaling a bullish undertone. He noted that typically a rally followed by consolidation results in another upward leg, and this pattern appears to be unfolding now.
Resistance is placed at 25,150 and then at 25,350. A strong move above these levels could further accelerate the rally. On the downside, support is seen around 24,850. Sustaining above 25,000 would likely trigger continuation in market momentum.
5. Most Active Stocks by Turnover: Where the Money Is
High turnover stocks are often leading indicators of market sentiment. On Friday, Cochin Shipyard (₹4,533 crore), BSE (₹3,061 crore), HDFC Bank (₹2,977 crore), Bajaj Finance (₹1,834 crore), Axis Bank (₹1,742 crore), Eternal (₹1,727 crore), and ICICI Bank (₹1,686 crore) led the charts. These stocks represent the flow of institutional money, a key component of short-term and medium-term market momentum.
6. Most Active by Volume: Retail Trader Favorites
High-volume stocks included Vodafone Idea (39.88 crore shares), Reliance Power (13.64 crore), IDFC First Bank (12.17 crore), YES Bank (11.21 crore), JP Power (9.26 crore), Suzlon Energy (7.59 crore), and Eternal (6.62 crore). These counters reflect high retail engagement and speculative interest. Momentum in these names can fuel volatility and trading activity, influencing broader market sentiment.
7. Stocks with Buying Interest: Emerging Leaders
Godrej Industries, Neuland Labs, Ramkrishna Forgings, Century Textiles, Cholamandalam Financial Holdings, IDFC First Bank, and ICICI Lombard witnessed strong accumulation. Early buying interest in such fundamentally strong mid-cap names is a healthy sign and adds breadth to the rally, increasing confidence in sustained market momentum.
8. 52-Week Highs and Lows: Sentiment Signals
On Friday, over 119 stocks recorded new 52-week highs, including heavyweight HDFC Bank, while 43 stocks fell to 52-week lows. This data reflects bullish breadth, an essential element for continued market momentum. A rising count of new highs indicates expanding leadership and strong internal strength.
9. Stocks Under Pressure: Caution Zones
Stocks like ABB Power, Jyoti CNC Automation, Zen Technologies, GRSE, Lloyds Metals, GE T&D India, and Gillette India faced selling pressure. Investors should watch these laggards, as sustained weakness in industrial and capital goods sectors could dampen the broader market momentum.
10. Sentiment Meter: A Market in Balance
Of the 4,156 stocks traded on BSE, 2,194 advanced, 1,832 declined, and 130 remained unchanged. The sentiment meter currently sits at neutral. For momentum to turn decisively positive, advancing stocks must consistently outpace decliners, supported by volumes and institutional flows.
Conclusion
The ten catalysts discussed here will play a defining role in determining Monday’s trajectory on Dalal Street. The RBI’s liquidity support and global optimism are generating bullish undercurrents. If these factors align with technical breakouts and institutional buying, traders and investors can expect sustained market momentum. However, caution remains key—especially in light of underperforming sectors and global macro risks.
Disclaimer
The information provided in this article is for educational and informational purposes only and should not be construed as financial, investment, or trading advice. The views expressed are based on public market reports and expert commentary as of the date mentioned and are subject to change. Readers are advised to conduct their own research or consult a qualified financial advisor before making any investment decisions. The author and publisher are not liable for any losses or damages resulting from reliance on the information in this article. Market investments are subject to risk, including the potential loss of principal.