Pre-poll rally: Sensex on track to hit 81K

The S&P BSE Sensex on Tuesday crossed the 75,000 mark for the first time, hitting a record high at 75,124.

- PUNEET WADHWA & REX CANO

The index took just four months to rally from 70,000 to 75,000. The last 10,000-point surge came in a little over nine months.

Analysts said the catalyst for the uptick is the hope of strong corporate earnings for the March 2024 quarter (Q4FY24) and a pre-election rally, which is fueling the momentum over the past one week.

"Investors are pinning hopes on strong Q4 earnings. We also assume that domestic growth in H1 FY25 is likely to remain strong on the back of an acceleration in consumption demand amid election-related spending. Hence, the markets are expected to perform well, with high focus on largecaps that offer better safety margins in earnings," said Prashanth Tapse, senior vice-president (Research) at Mehta Equities.

On the technical charts, Sensex is seen holding firmly above its key moving averages on the daily scale. The 20-DMA (Daily Moving Average) stands at 73,3,50 and 50-DMA at 72,850. The 200-DMA, which tracks bullish and bearish trends, stands at 68,500, or almost 9 per cent lower from current levels.