The Sensex rose by 1,046.30 points, closing at 82,408.17, while the Nifty 50 increased by 319.15 points, finishing the day at 25,112.40. 44 stocks closed in positive territory, with only 6 in decline, highlighting the ICICI Securities Equity benchmark gained ~1.5% and settled the session at 25,112, outpacing Midcap index (-0.5%) Shah has recommended one stock to buy for short-term. The weekly price action formed a bull candle confined within last week's trading range, indicating prolonged consolidation. Over past five weeks Nifty 50 has been consolidating in 700 points range. Meanwhile, pharma underwent profit booking after announcement of possible tariff by US. Nifty 50 has formed a higher bottom above 50-day EMA (24,480) and looks poised for a breakout from five weeks of consolidation. In the process, bouts of volatility owing to geopolitical concern and monthly expiry week cannot be ruled out.

Past four decades, six major geopolitical escalations suggest that index forms a major bottom once the anxiety around the geopolitical event settles down. Investing in such a panic like scenarios with a long-term mind set has been rewarding with double digit returns. The Nifty midcap index has taken a breather after 28% rally off April low. It is now approaching lower band of rising channel that coincided with 50 days EMA. Since April low, MidcapIndex has not corrected >6% while on the weekly chart it has not Brent crude is hovering at immediate hurdle of $78. Lack of follow through strength would result into consolidation in 78-66 range. Further weakness in US Dollar index 4.

Development of geopolitical issues. Dharmesh Shah of ICICI Securities recommends buying Larsen & Toubro shares this week. He has L&T share price target of $ 3,928 with a stop loss of  $ 3,264. Bilateral Trade Agreement between India and US Mint strongly advises investors to consult with certified experts before making any investment decisions. The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. The market conditions can change rapidly and individual circumstances may vary.