The decline in crude oil prices also provided some immediate relief to Indian investors.
Despite the rebound, the market is not completely out of the woods yet, and the current move may still be considered a pullback as long as the Nifty trades below the 25,200 level.Adani Ports, Hindalco and Larsen & Toubro topped the list of Nifty gainers. On the other hand, Tech Mahindra, ICICI Bank and HCL Tech bucked the trend to end in the red.
Except for Nifty IT, all sectoral indices closed in positive territory, with metals, consumer durables and auto stocks leading the gains.
Midcap and smallcap stocks mirrored the benchmark’s pullback rally, with the Nifty Midcap 100 and Nifty Smallcap 100 rising 1.52% and 1.58%, respectively.Going ahead, markets will closely track developments in West Asia, movements in global energy prices and broader global risk sentiment for further directional cues.
According to Nagaraj Shetti of HDFC Securities, the recent sharp correction in the market appears to have reversed with the formation of a short-term bottom reversal pattern.
He added that sustained upside momentum could push the Nifty towards the 25,000 mark in the near term, while immediate support is placed at 24,500.
Nilesh Jain of Centrum Finverse said immediate support is placed at 24,600, and a break below this level could drag the index towards 24,400.
Rupak De of LKP Securities said support is placed at 24,530 and 24,300, while resistance is seen at 24,850 and 25,000. He added that the “sell on rise” strategy remains valid until the Nifty decisively moves above the 25,000 level.
Meanwhile, Nandish Shah of HDFC Securities said the Nifty trading below its 5, 10 and 20 DEMA may make any bull comeback challenging.
Short-term support is placed at the recent swing low of 24,305, while the 24,990-25,150 zone remains a key resistance band.
