Sensex Surges on Buying Strength as Market Prepares for Monthly F&O Expiry
The benchmark equity indices witnessed a significant rebound on Wednesday, recovering nearly 1 percent after a challenging previous session. This resurgence was primarily buoyed by easing crude oil prices and robust buying activity observed across the banking, financial, and IT sectors.Indices Recover: Sensex Climbs Amidsector Strength
The Sensex demonstrated strong upward momentum, surging 790.54 points or 1.04 percent to conclude at 76,991.22. During intraday trading, the index briefly climbed even higher, adding 989.69 points or 1.29 percent to reach 77,190.37.Meanwhile, Nifty also advanced considerably, rising by 197.55 points, or 0.83 percent, settling at 24,021.65. The collective recovery indicates renewed interest from market participants in equity derivatives trading.
Technical View: Sensex Finds Strong Support
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, noted that the Sensex formed a powerful bullish candle. This surge represents a sharp rebound after the index had found crucial support near the previous session's lower levels.Tailor stated that the recovery from the support zone and the closing near the day's high signal renewed buying interest. He suggested that the recent corrective phase of the market may be losing momentum, allowing the index to reclaim key short-term levels.
Bullish Outlook: Key Resistance and Support Levels Defined
According to Tailor, the overall market bias has seen a positive improvement following Wednesday's recovery performance. The Sensex is now approaching its recent swing resistance zone.He advised that sustained trading above the 76,000-76,200 support zone is critical for maintaining positive momentum. For bullish traders, immediate resistance areas are identified around 77,500-77,700. A successful decisive move beyond this level could strengthen the uptrend outlook substantially.
Nifty's Mixed Technical Setup Ahead of Expiry
Anand James, Chief Market Strategist at Geojit Investments, offered a more mixed technical assessment for Nifty’s recent movement. He noted that although Nifty closed at the lowest point of the day, it appeared to have successfully taken support near its 10-day Simple Moving Average (SMA).James emphasized that while this development offers hope for a recovery attempt, participants must be prepared for downside risk. If Nifty fails to clear the crucial 23,920 level, the likelihood of a downturn increases, with targets being set at 23,670/50.
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