NIFTY50 eyes 24,000 rebound as Sensex surges 750 points despite US-Iran tensions

Indian equity markets staged a strong comeback on Wednesday, July 29, with the Sensex jumping 750 points in early trade. The rally pushed the NIFTY50 closer to the psychologically important 24,000 mark, offering relief to investors after a volatile start to the week.

The rebound came despite fresh geopolitical tensions between the US and Iran, which have kept global markets on edge. Traders appeared to shrug off the uncertainty, focusing instead on falling crude oil prices and bargain buying in beaten-down stocks.

Crude oil relief fuels market optimism

A key driver of Wednesday's upmove was the decline in global crude oil prices. Lower input costs are seen as a positive for India, a major oil importer. The dip in crude helped ease concerns about inflation and corporate margins, prompting buying across sectors.

Broader Asian markets were mixed, but Indian indices outperformed. Analysts said the domestic market was due for a technical bounce after recent corrections. The NIFTY50 had slipped below 23,800 in the previous session, triggering value buying at lower levels.

Top gainers and losers: TCS jumps, HUL slumps

Among individual stocks, IT giant TCS was the standout gainer, surging 5% in early trade. The rally in TCS boosted the IT sector index, which has been under pressure in recent weeks due to global demand concerns.

On the losing side, Hindustan Unilever (HUL) slumped 7% after reporting weak quarterly numbers. The FMCG major's results disappointed the street, leading to heavy selling. Other laggards included BEL and Coal India, both falling 4% each. The divergent moves highlight the stock-specific nature of the current market.

Market breadth improves but caution remains

Market breadth turned positive, with more stocks advancing than declining on the BSE. Midcap and smallcap indices also gained, suggesting that the rally was broad-based. However, traders are not popping champagne just yet.

The sustainability of the upmove will depend on global cues and domestic macros. The US-Iran situation remains fluid, and any escalation could trigger risk-off sentiment. Additionally, foreign portfolio investors (FPIs) have been net sellers in July, and their stance will be closely watched.

Technical analysts point out that the NIFTY50 needs to close above 24,000 on a sustained basis to confirm a breakout. Failure to hold the level could lead to another round of profit booking. The index is currently trading near its 50-day moving average, a key support-turned-resistance zone.

What to watch in the coming sessions

Investors will track crude oil prices, the rupee's movement, and any fresh developments on the geopolitical front. The weekly F&O expiry on Thursday could add to volatility. For now, the bulls have seized control, but the battle for 24,000 is far from over.