Domestic equity markets staged a strong recovery on Monday as fag-end buying lifted benchmark indices sharply, helping the BSE Sensex surge 939 points while the Nifty 50 reclaimed the 23,300 mark. The rebound was largely driven by value buying in domestically focused sectors such as auto, banking, and FMCG after a recent phase of correction.
During the session, the Nifty slipped below the psychological 23,000 level but quickly recovered, indicating strong support at lower levels. On the daily chart, the index has formed a piercing line pattern, a bullish reversal signal that often appears after a prolonged decline.
Market participants said the pattern suggests a potential near-term pullback rally, although the broader market sentiment remains cautious amid global uncertainties. Technically, the index now faces resistance around 23,800, while immediate support is placed at 23,200. A break below this level could renew downward pressure on the benchmark.
The late-session rebound was led by strong buying interest in auto and banking stocks, which had witnessed significant selling pressure in previous sessions. Analysts noted that valuations in several key sectors have moderated after the recent correction, narrowing the premium valuation gap and attracting bargain hunting.
Despite the recovery, near-term risks remain for the market. Investor sentiment continues to be influenced by geopolitical developments in the Strait of Hormuz, where tensions have disrupted global energy supply routes. Any easing of disruptions could provide additional support to equity markets.
At the same time, persistently elevated crude oil prices remain a key concern for investors, as higher energy costs could impact inflation and corporate profitability.
Globally, market participants are also closely watching the upcoming policy decision by the Federal Reserve. The central bank is widely expected to keep interest rates unchanged, though inflation concerns and geopolitical tensions continue to cloud the global economic outlook.
For now, analysts believe the market may witness intermittent technical rebounds, but sustained gains will depend on stability in global macroeconomic conditions and easing geopolitical risks.
Late Buying Sparks Rally; Sensex Soars 939 Points, Nifty Reclaims 23,300
