The Indian stock market witnessed a sharp turnaround on Thursday, with the Sensex and Nifty indices recovering from their previous losses. The Nifty rebounded, trading about 30 points higher and moving above the 25,800 mark, while the Sensex climbed to around 84,600. This sudden change in market sentiment has left investors wondering if a Santa rally is on the horizon.
The Nifty's 50-day moving average has emerged as a crucial support level, with the index finding support around this mark and subsequently bouncing back in recent pullbacks. However, experts believe that investors remain cautious due to weak global signals, which have triggered broad-based selling pressure across most sectors.
The ongoing sell-off in US stocks has begun to weigh on markets worldwide, including India. US indices continued their decline overnight, largely driven by profit-taking in technology and AI-focused stocks that had previously surged sharply. This has led to a choppier market structure, with the Nifty struggling to break above the 25,800 mark.
According to experts, the inability to break below the swing support, coupled with a clear failure to reclaim higher resistance, points to fading momentum and a sideways trade in the near term. Anshul Jain, Head of Research at Lakshmishree, believes that the index will oscillate within a defined range of 25,740 to 26,050 over the coming sessions.
Remember, this is just a perspective, not a prediction. It's essential to do your own research and consult with an investment advisor before making any investment decisions.
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