Markets Remain Vulnerable to Sell-Offs Despite Recent Gains, Analyst Warns

Market Update: Indian Equities Rebound Amid Global Recovery

Indian benchmark indices, Sensex and Nifty, rebounded on Thursday, settling over 1 percent higher, in line with a recovery in global markets following recent losses linked to tensions in West Asia.

Key Figures:

• Sensex: +899.71 points (1.14%) to settle at 80,015.90
• Nifty: +285.40 points (1.17%) to close at 24,765.90
• Sensex intraday high: 80,303.83 (1,187.64 points or 1.5% gain)

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Market Analysis:

Despite Thursday's gains, analysts note that the broader market structure remains weak. The "sell on rise" strategy is still valid for the market, with the Nifty needing to decisively move above 25,000 to confirm a reversal.

Technical Insights:

• LKP Securities' Rupak De observes that the overall chart structure has not changed materially, with the Nifty trading below its 200-day moving average and former trendline support.
• SBI Securities' Sudeep Shah highlights the 24,550-24,530 zone as an important support level, with resistance seen at 24,920-24,950 and a potential pullback rally towards 25,100.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Sectoral Performance:

• Metal, auto, and energy stocks were among the key gainers.
• IT shares traded subdued, limiting overall momentum.
• Midcap and smallcap indices advanced about 1.5% each, offering relief after recent declines.