Bajaj Broking: The benchmark equity indices witnessed a sharp rally on April 8, tracking firm global cues and a steep decline in crude oil prices following the announcement of a two-week ceasefire between the U.S. and Iran. On the domestic front, sentiment was further supported as the RBI Monetary Policy Committee (MPC) unanimously maintained the policy rate at status quo, retaining a neutral stance.

At close, the Sensex surged 2,946.32 points, or 3.95%, to settle at 77,562.90, while the Nifty rallied 873.70 points, or 3.78%, to close at 23,997.35. Broader markets outperformed, with both Nifty Midcap and Small cap indices advancing more than 4% each.

Sectorally, gains were broad-based, with all indices ending in the green. Auto and Realty led the rally with gains of over 6%, while Consumer Durables, Oil & Gas, Telecom, Infra, PSU Banks, and Private Banks advanced in the range of 3–5%. Focus now shifts to the earnings season commencing tomorrow, along with the upcoming CPI data release.

Nifty Outlook  

The index witnessed a strong rally supported by firm global cues and closed around the 24,000 levels. It has formed a fourth consecutive bullish candle with a higher high and a higher low and a bullish gap below its base between 23,153-23,828 signaling continuation of the pullback for the fourth session in a row. The index in the process closed above the 20 days EMA and also closed above its immediate previous high of 23465 highlighting strength and pause in the recent downtrend.

Going ahead sustaining above the 20 days EMA and the Wednesday bullish gap area will keep bias positive and extend the current up move towards 24,300 and 24,700 levels in the coming sessions. Short-term support is revised higher towards 22,700–22,500 zone being the current week low and 61.8% retracement of the last four sessions pullback.

Bank Nifty Outlook

Bank Nifty formed a strong bullish candlestick pattern with a higher high and a higher low and a bullish gap below its base between 52,778-54797 signaling continuation of the pullback for the fourth session in a row. Index started the session on a positive note and gained momentum as the session progressed. Index in the process closed above the 20-day EMA, highlighting strength and pause in the recent downtrend.

Going ahead, sustaining above the 20-day EMA and the Wednesday bullish gap area will keep the bias positive and extend the current up move towards 56,300 and 57,000 levels in the coming sessions. Short-term support is revised higher towards 51,000–51,500 zone, being the current week's low and 80% retracement of the last four sessions' pullback.

Also Read: Trump Ceasefire Boosts Indian Stock Market, Benchmark Indices Surged

Motilal Oswal Financial Services: Global equity markets have staged a strong recovery following the announcement of a two-week ceasefire between the United States, Israel, and Iran. This triggered a sharp 14% decline in Brent crude prices, bringing them below $95/bbl and significantly improving sentiment. Indian equities mirrored the global rally, with benchmark indices gaining 3–4% -the Nifty surged over 850 points (+3.7%) and the Sensex rose more than 2,800 points (+3.8%).

Broader markets outperformed, with midcap and smallcap indices advancing over 4.2% each. Rate-sensitive sectors, including auto and financials, led the gains, rising around 6%.

The ceasefire has reduced near-term geopolitical uncertainty, supporting risk-on flows into equities—particularly in emerging markets like India, which had witnessed record FII outflows in March. Additionally, the sharp correction in crude prices is a key positive for India, as it eases inflationary pressures, narrows the current account deficit, supports the rupee, and strengthens fiscal dynamics.

On the policy front, the RBI maintained the repo rate at 5.25% with a neutral stance, ensuring stable liquidity conditions. While concerns around a potential inflation-led rate hike persist, the current pause continues to support valuations, especially in rate-sensitive sectors such as banks, financials, autos, capital goods, and infrastructure.

With macro stability in place, market focus is now shifting to Q4FY26 earnings. Stock and sector differentiation is likely to increase, with markets rewarding earnings visibility over liquidity-driven momentum.

The near-term outlook remains positive, supported by stable macros, improving sentiment, and liquidity conditions. However, the sustainability of the rally will depend on progress in geopolitical negotiations, easing of supply disruptions, and normalization of energy shipments. Movements in crude oil prices, the rupee, and FII flows will remain key determinants of near-term market direction.