Can Indian stocks continue their record rally?

Investors will eye this week's trading sessions to see if Indian stocks, which have made a brisk recovery from election results day loss, continue on the record rally path.

However, the volatility has also been high, with global cues pointing to weakness in world stocks.

Global risks are weighing on trades in Asian hours, with geopolitics and trade wars weighing on investor sentiment.

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Asian stocks stumbled in early trade even as stocks on Wall Street hit a record high.

The broader Nifty 50 index hit a record high every single day last week and closed with gains in four of the five sessions.

The blue-chip Sensex index was not too far behind, with two records in five days.

After near-400 billion-dollar wipeout on the voting count day, the recovery in Indian shares was brisk, with the losses recouped in just three days.

That significant recovery marked the fastest pace of recovery in the last decade.

Trading volumes hit a high

Last week, foreign buying and broader global market recovery pushed Indian stock trading volumes to a record high.

Bloomberg data shows that the 10-day moving average volume on India's benchmark indices rose to $21 billion in the middle of the week.

The rise in volumes marked a jump of about 50 per cent over the past month.

To put that into context, the trading volume was in the $6 to $10 billion range between 2022 and September last year.

However, the closing change over the past week has been negligible with less than 1 per cent moves.

While trades show record highs, the closing figures have barely moved the needle.

What to expect?

Investors will eye the trade volumes and life high levels for benchmark indices this week.

Can the Nifty index breach its all-time high of 23,490 hit on Friday?

Can the Nifty end this week's session in the positive and mark the fifth consecutive session of gains?

Can the Sensex surpass its life high of 77,145 reached on Thursday?

Besides these, the biggest trend would be global sentiment for the rest of the week.