Sensex Surges 600 Points from Day's Low, Nifty Climbs Above 24,050: Explaining the Market's Sharp Recovery

Market Rebounds as Sensex and Nifty Stage Significant Recovery

On May 5, the Indian stock market staged a significant recovery after a gap-down opening, with the Sensex and Nifty indices rebounding strongly.

At 1:08 pm, the Sensex was down 169.62 points or 0.22% at 77,099.78, and the Nifty was down 52.15 points or 0.22% at 24,067.15. However, the market witnessed a significant turnaround, with the Sensex rising 600 points from its day's low. The Nifty also managed to trade above the psychologically important 24,000 level.

Key Factors Behind the Market Rebound

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Several key factors contributed to the partial market rebound on May 5.

In addition to these factors, the Nifty F&O weekly expiry on May 5 could have contributed to the volatility in the market. Analysts also pointed out that the Nifty's strong support lies at 23,950, and a decisive break below that level would be needed for further fall in the index.

According to analysts, a recovery in the Nifty is dependent on the index's ability to stay above 23,940. If the index is unable to breach 24,162 on the bounce, it may force analysts to consider downside plays targeting 23,780-56 as the first leg.

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