Sensex, Nifty rebound over 1% after 3-day decline amid cooling volatility

NEW DELHI: Equity benchmarks ended a three-day losing streak on Thursday as the BSE Sensex and Nifty 50 recovered amid cooling volatility and technical relief. The BSE Sensex climbed 899.71 points, or 1.14 per cent, to close at 80,015.90, while the Nifty 50 rose by 285.40 points, or 1.17 per cent, to finish at 24,765.90.

Adani Ports was the top Nifty gainer, rising over 4.5 per cent, followed by Larsen & Toubro with a gain of around 4 per cent. Hindalco Industries increased about 3.6 per cent, while NTPC and Reliance Industries climbed more than 3 per cent each. Coal India, Bharat Electronics, Shriram Finance, and JSW Steel were also among the major gainers.

Among sectors, the Nifty Metal index rose over 2 per cent, and Nifty Infra gained about 2.2 per cent, while Nifty IT was the only major sector to close in negative territory. Market experts noted that the frontline indices opened with an upward gap as volatility eased across the board.

“The frontline indices opened with an upwards gap as their volatility cooled off. Among the major sectoral indices, Nifty Metal is the best performing index gaining 2.29% while Nifty IT is the worst performing sector losing 1.47%. Coming back to Nifty, the zone of 24,470-24,450 will act as a crucial support for the index while the resistance lies in the zone of 24,780-24,800 zone,” said Sudeep Shah, Head-Technical and Derivatives Research at SBI Securities.

Shah noted that if the index slips below the level of 24,450, then the next support is placed in the zone of 24,320-24,300. “Speaking of Sensex levels, support is at 79,100 while resistance is at 79,900,” he said.

Hitesh Tailor, Technical Research Analyst at Choice Broking, said, “Despite the surge in crude oil prices and persistent geopolitical tensions in West Asia, today’s market rebound appears largely driven by technical and derivative factors. After the recent sharp correction, benchmark indices had slipped into deeply oversold territory, prompting a relief rally.”

Tailor further noted that the cooling in volatility suggested that a significant portion of geopolitical risk had already been priced in during previous declines.

Tailor stated that “strong domestic institutional buying has helped stabilise the market despite continued FII caution.” He characterised the current move as a “technical mean-reversion rally supported by derivatives positioning and selective value buying at lower levels.” (ANI)