Sensex Ends 5-Day Losing Streak, Nifty Approaches 24,000 Mark
- Sensex and Nifty ended a five-day losing streak on Monday.
- Nifty 50 index closed near the 24,000 level.
- Markets rebounded amid broad-based buying across sectors.
Markets Rebound After Prolonged Fall
Indian equity benchmarks snapped a five-day losing streak on Monday, with the Nifty 50 index closing in on the psychologically important 24,000 mark. The BSE Sensex also ended higher, recovering from recent lows. The rally was broad-based, with buying seen across most sectors.
What Drove the Recovery
Traders attributed the bounce to value buying after the recent sharp correction. The five-day slide had pulled the Nifty down by over 3% from its highs, making valuations attractive for short-term players. Positive cues from global markets also added to the sentiment.
IT, banking, and auto stocks led the gains. The Nifty Bank index rose over 1%, while IT heavyweights like Infosys and TCS closed in the green. Auto stocks, including Maruti Suzuki and Mahindra & Mahindra, also saw buying interest.
Key Levels to Watch
The Nifty 50’s approach toward 24,000 is being closely watched by traders. A decisive close above this level could trigger further short-covering and bring the index back toward its recent highs. On the downside, 23,500 remains a strong support.
Market breadth was positive, with advancing stocks outnumbering declining ones on the BSE. Volumes were moderate, indicating that institutional participation, while present, was not aggressive.
Global Cues Supportive
Asian markets traded higher on Monday, tracking a positive close on Wall Street last Friday. The US Federal Reserve’s recent comments on keeping rates steady for longer have been digested by investors, with focus now shifting to quarterly earnings.
Foreign portfolio investors (FPIs) remained net sellers in the cash market, but their selling intensity decreased compared to last week. Domestic institutional investors (DIIs) were net buyers, providing support to the market.
Outlook for the Week
Analysts expect the market to remain volatile in the near term, with the focus on global cues and the upcoming monthly derivatives expiry. The Nifty’s ability to hold above the 23,800 level will be crucial for the bulls.
Traders are advised to watch for any fresh triggers from the US Federal Reserve or domestic macroeconomic data. The market’s resilience will be tested as it attempts to build on Monday’s gains.