Markets Bounce Back: Nifty Closes Near 24,100, Sensex Jumps 639 Points

Indian Equities Snap Three-Day Losing Streak, Close 0.5% Higher

The Indian equity benchmarks ended a three-day losing streak, closing around 0.5% higher on Wednesday, as improving global sentiment lifted investor confidence. The development came after reports that Iran had offered a plan to the United States to reopen the Strait of Hormuz, easing concerns over stalled peace negotiations and potential supply disruptions.

The market opened higher and continued to see buying as the day progressed, closing near day's high amid buying across the sector and broader indices. At close, the Sensex was up 639.42 points or 0.83 percent at 77,303.63, and the Nifty was up 194.75 points or 0.81 percent at 24,092.70.

Broader markets outperformed, with the Nifty Midcap index rising 1.5% and the Smallcap index gaining 1.9%. The rally was widespread across sectors, with healthcare, IT, realty, media, consumer durables, pharma, and power indices advancing nearly 2% each.

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Sectoral Performance

More than 160 stocks touched their 52-week high on the BSE, including Torrent Power, Engineers India, CESC, HFCL, Aarti Industries, Adani Ports, SAIL, Tata Power, JSW Steel, Adani Power, BHEL, Adani Energy, NTPC, NMDC, Granules India, Lloyds Metals, NALCO, Hindalco, Adani Green Energy, Nestle, among others.

In stock-specific developments, Sigma Advanced Systems surged 5% after securing a £300 million long-term agreement, while Transformers and Rectifiers gained 6% on the back of a ₹150 crore export order. In contrast, Mangalore Refinery and Petrochemicals declined 7% after reporting a 68% drop in Q4 profit.

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Supreme Petrochem slipped 5% despite a 57% jump in standalone Q4 profit, whereas Tanla Platforms rallied 20% driven by strong quarterly earnings. Among other movers, Supreme Power Equipment advanced 5% after winning ₹128 crore in domestic orders, and Pace Digitek gained nearly 5% on entering a strategic OEM partnership with NEC XON, while One 97 Communications (Paytm) shares shed 1.3% after RBI cancels banking licence of Paytm associate entity.

Meanwhile, Cohance Lifesciences soared 20% after appointing Umang Vohra as Executive Chairman and Group CEO. Sun Pharma climbed 7% on announcing the acquisition of US-listed Organon in a $12 billion deal and One MobiKwik Systems rose 11% post RBI approval for NBFC application.

Outlook for April 28

Shrikant Chouhan, Head Equity Research, Kotak Securities, noted that the benchmark indices witnessed a pullback rally. The Nifty ended 195 points higher, while the Sensex was up by 639 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Pharma, Reality, and IT indices outperformed, rallying over 2 percent.

Technically, after a gap-up opening, the market maintained positive momentum throughout the day. A bullish candle on daily charts and a reversal formation on intraday charts indicate that a pullback formation is likely to continue in the near future.

For day traders, 24,000/77,000 and 23,900/76,700 would act as crucial support zones. As long as the market is trading above these levels, the bullish sentiment is likely to continue. On the higher side, the index could move up to 24,215/77,700. Further upside may also persist, potentially lifting the index up to 24,300/78,000.

On the flip side, below 23,900/76,700, the uptrend would become vulnerable. Under such circumstances, traders may prefer to exit their long positions.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, noted that the benchmark index Nifty began the trading session on a strong note with a gap-up opening. However, after the initial thrust, the index largely remained range-bound and traded within a relatively narrow band of 194 points throughout the session. Despite the lack of strong follow-through buying, the index managed to hold onto its gains and settled near the crucial 24,100 level, registering a healthy gain of 0.81% for the day.

Going forward, the 50-day EMA placed in the 24,200–24,230 zone will act as an immediate resistance for the index. A sustained move above 24,230 could trigger further upside towards the 24,400 level. On the downside, the 20-day EMA in the 23,970–23,950 range is expected to provide strong support and help maintain the positive short-term trend.