The Indian stock market experienced a dramatic reversal on Thursday, with the BSE Sensex dropping 417.49 points, or 0.55 per cent, to close at 76,152.86 after opening higher. According to Pioneer News Service, the index opened higher and rose 354.13 points, or 0.46 per cent, to hit an intraday high of 76,924.48 before paring gains during the closing session. The NSE Nifty slipped 41 points, or 0.17 per cent, to settle at 23,873.45, marking a significant reversal from the positive opening sentiment that had been supported by Wall Street's overnight rebound and gains across Asian equities. The reversal came as investors turned cautious amid geopolitical uncertainties, with 2,545 stocks advancing, 1,778 declining and 223 remaining unchanged on the BSE.
Despite the late-session decline, the positive opening sentiment had translated into strong early market performance, with Sensex soaring over 850 points and Nifty crossing 24,200 as IT and metal stocks rally significantly. As per News18, the market momentum was being driven by robust performance in technology stocks, with IT stocks surging up to 8.1% despite global chip market selloffs. This strong performance came after yesterday's choppy session where the market ended below 24,000, demonstrating the resilience of Indian equities amid global uncertainties, though the gains were not sustained throughout the trading session.
Speaking on the outlook of the Nifty 50, Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, noted that the 50-stock index opened with a gap up near the 24,000 zone but fizzled out, eroding gains as the day progressed to end in the red below the 23,900 zone. As reported by Live Mint, she maintained that a bullish or bearish trend can be assumed only when the 50-stock index breaks either of the 23,800-24,400 range. The index needs to sustain the 23,800 zone and move past the 50-EMA level at 24,200 to improve bias and establish conviction for upward movement.
Regarding Bank Nifty outlook, Parekh said the key benchmark index continues to be gripped between the tight range of 58,000 zone and 57,000 level. According to Live Mint reports, the major support from the current rate needs to be sustained at the 100-period MA at 56,500 zone. On the upside, the 58,000 zone continues to be the tough resistance hurdle which desperately needs to be conquered to trigger a breakout.
The reversal in market sentiment came amid Janmashtami celebrations across the nation, providing additional support to market sentiment earlier in the day. According to Live Mint reports, easing global bond yields were providing some relief to risk assets, contributing to the optimistic market outlook. However, the market faced headwinds from rising crude oil prices and losses in IT stocks that weighed on investor sentiment during the final trading hours. The combination of technical indicators and seasonal factors, along with strong IT sector performance earlier in the session, suggests potential for sustained market strength despite the late-session reversal.
