Market Wrap

Indian equities staged a strong rebound on Thursday following the sharp sell-off in the previous session. The Nifty 50 opened gap-up above Wednesday’s high and largely traded within a narrow range throughout the day. The index briefly crossed the 24,850 mark but failed to hold higher levels during the final hour of trade, eventually closing slightly above 24,750, gaining around 1.17%.

The recovery was supported by steady buying in the second half of the session along with improving global cues. Asian markets traded firmly in the green, while European equities also opened with gains, helping lift overall market sentiment. Domestic volatility also eased significantly, with India VIX falling nearly 15% to 17.86, indicating that the panic seen in the previous session has subsided.

Sectorally, auto stocks led the rebound, with the Nifty Auto index witnessing broad-based buying and forming a strong reversal candle on the daily chart. The move signals improving momentum in the sector and suggests the possibility of near-term outperformance. Global risk sentiment also improved slightly after Iran signaled willingness to consider negotiations on its nuclear program, which helped calm geopolitical concerns.

What's Ahead

Going into the next session, the key level to watch for the Nifty remains the 24,650–24,550 support zone. Sustaining above this range could keep the recovery intact, while a break below it may bring back selling pressure in the short term.

On the upside, 24,900–25,000 remains the immediate resistance zone, followed by the 50-week moving average near 25,065. Global cues, crude oil price movements, and developments around geopolitical negotiations and U.S. tariff policies are likely to remain important triggers for market direction in the coming sessions.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 rebounded strongly, gaining 285.40 points (1.17%) to close at 24,765.90 after the previous session’s sharp correction, supported by buying in metals, capital goods, and energy stocks. The index opened at 24,615.95, slipped to an intraday low of 24,529.40, and later surged to a high of 24,854.20 before settling near the day’s upper range, reflecting steady recovery driven by short covering and improved global sentiment. Technically, the RSI has recovered toward the 40 level, indicating improving momentum after recently entering oversold territory. The structure suggests a near-term stabilization phase with a positive bias as long as the index holds key supports at 24,385 and 24,154, while a sustained move above resistance levels of 25,131 and 25,361 could open the door for a stronger upward extension.

Bank Nifty

The NIFTY Bank ended the session higher by 300.60 points (0.51%) at 59,055.85, as selective buying in PSU and private banking stocks helped the index recover from intraday weakness. After opening at 59,008.25, the index briefly slipped to a low of 58,506.40 during the session before rebounding to an intraday high of 59,274.35 and closing near the psychological 59,000 mark. Although mild profit booking was seen in the afternoon, the late-session recovery indicates underlying buying interest in the sector. Technically, the RSI has rebounded toward the 40 zone, suggesting a modest improvement in momentum after recent weakness. Going ahead, the index may continue to consolidate with a positive bias as long as it holds above 58,281 and 57,801, while a breakout above 59,831 and 60,311 could signal stronger upside momentum.

Nifty Financial Services

The NIFTY Financial Services advanced 215.35 points (0.80%) to close at 27,235.80, supported by strong buying in NBFCs and select financial stocks. The gains were led by strong moves in power financiers and diversified financial companies, which helped offset weakness in some banking heavyweights. The index displayed steady upward momentum through the session, indicating improving sentiment in the broader financial segment. From a technical perspective, the index appears to be stabilizing after recent volatility, with market breadth remaining supportive. As long as the index holds above the immediate support levels of 26,808 and 26,561, the near-term trend could remain constructive, while a decisive move above resistance levels of 27,608 and 27,855 may trigger further upside momentum.

Sensex

The BSE Sensex rallied 899.71 points (1.14%) to close at 80,015.90, driven by broad-based buying in capital goods, energy, and metal stocks. The benchmark witnessed strong participation across cyclical sectors, helping it reclaim the psychological 80,000 mark after recent weakness. Despite mild pressure from select IT and banking stocks, the index maintained a firm undertone throughout the session, supported by improving market breadth. Technically, the recovery suggests the possibility of a short-term rebound following the recent correction. Immediate support for the index is placed at 78,738 and 77,930, while resistance levels at 81,352 and 82,160 remain key hurdles that the index needs to overcome to confirm a stronger bullish continuation.