Indian equity markets witnessed a strong rebound on Thursday, with benchmark indices recovering sharply after a brief phase of risk aversion triggered by escalating tensions in West Asia. The recovery in global equities and improving risk appetite helped domestic markets snap a multi-session losing streak, although technical indicators continue to signal caution for investors.

The Sensex ended the session at 80,015.90, rising 899.71 points or 1.14 percent, after touching an intraday high of 80,303.83 during the session. The move marked the index’s first gain after four consecutive days of declines.

The Nifty also reversed its recent weakness, climbing 285.40 points or 1.17 percent to settle at 24,765.90, thereby ending a three-day losing streak.

The rebound was largely driven by a stabilisation in global markets following indications that geopolitical tensions in West Asia may not escalate further in the immediate term. International equities had faced sharp pressure earlier as investors reassessed geopolitical risks, energy supply disruptions and their potential macroeconomic impact. With risk sentiment stabilising, investors returned to cyclical and commodity-linked sectors in Indian markets.

Across sectors, buying interest was broadly visible. Metal, automobile and energy stocks led the gains, reflecting renewed appetite for cyclical segments that tend to benefit from improving global risk sentiment and commodity price stability. In contrast, information technology stocks remained subdued, limiting the overall upside for the benchmark indices.

The broader market also participated in the rebound. Midcap and smallcap indices rose around 1.5 percent each, providing relief to investors after recent selling pressure in the broader universe.

However, despite the sharp rebound in headline indices, market experts emphasise that the structural trend remains uncertain and technically fragile.

According to Rupak De, Senior Technical Analyst at LKP Securities, the broader chart structure of the market has not materially improved.

He noted that the “sell on rise” strategy continues to remain relevant unless the Nifty convincingly moves above the 25,000 level, which currently acts as a major psychological and technical barrier.

From a technical standpoint, the index is still trading below its 200-day moving average and beneath a previously broken trendline support, both of which now function as resistance levels. Such positioning typically indicates that the broader market momentum remains under pressure even if short-term rebounds occur.

Momentum indicators also suggest mixed signals. While the Relative Strength Index (RSI) is showing early signs of a potential positive divergence, analysts say the signal has not yet been confirmed, leaving uncertainty about the sustainability of the current recovery.

On the downside, De highlighted 24,530 and 24,300 as key support levels that could determine the near-term direction of the market. On the upside, resistance is expected around 24,850 and 25,000.

Similarly, Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, emphasised that the 24,550–24,530 zone will act as an important support region for the Nifty in the near term.

According to Shah, resistance for the index lies in the 24,920–24,950 range. A sustained move above 24,950 could potentially trigger a short-term pullback rally toward 25,100.

The current market behaviour reflects a broader phase of consolidation in Indian equities following strong gains earlier in the year. While periodic recoveries are being driven by global cues and sector rotation, the absence of decisive technical breakouts suggests that institutional investors remain cautious.

For domestic investors, global macro developments remain a key variable. Geopolitical tensions in West Asia continue to influence energy markets and risk sentiment globally, which in turn affects capital flows into emerging markets including India.

At the same time, sectoral rotation within the market indicates selective buying rather than broad-based bullish conviction. Commodity-linked sectors such as metals and energy tend to respond quickly to global developments, while export-oriented sectors like IT remain sensitive to global growth expectations and currency movements.