Sensex Surges Over 1%, Nifty Jumps on Global Cues as DII Buying Counters FII Outflow

Sensex Surges Over 1%, Nifty Jumps on Global Cues as DII Buying Counters FII Outflow​

The Indian equity markets witnessed a strong rebound in a volatile trading session, with the Sensex and Nifty closing higher amid supportive global cues and encouraging corporate earnings. The index gains were fueled by strong domestic institutional participation despite significant selling pressure from foreign investors (FIIs).

Market Index Performance and Sectoral Movers​

At market close, the benchmark Sensex finished up 776.01 points, recording a gain of 1.02% to reach 76,835.78. Correspondingly, Nifty registered a rise of 228.50 points, or 0.96%, closing at 23,995.95.

Sectoral performance was robust, with Nifty Media leading the charge, rising 2.4%. The Nifty IT sector also climbed significantly by 2.3%. Other notable sectoral gains included Nifty Realty at 2.2%, and advancements in Nifty Auto (1.6%) and Nifty Pharma (1.5%).

Investor Flow Dynamics: DIIs Net Buy as FIIs Sell Shares​

The trading day highlighted a sharp divergence in investor behavior between domestic and foreign entities. Domestic institutional investors (DIIs) showed strong buying conviction, net purchasing shares worth Rs 15,937 crore, despite selling shares worth Rs 13,608 crore during the session.

In stark contrast, Foreign Institutional Investors (FIIs) exhibited a net selling trend, offloading shares valued at Rs 13,384 crore while netting purchases of Rs 11,696 crore. On a year-to-date basis, DIIs have aggressively purchased shares worth Rs 4.88 lakh crore, contrasting with FIIs who have net sold Rs 3.51 lakh crore so far this year.

Analyst View: Technical Positioning and Future Hurdles​

Ajit Mishra, SVP at Religare Broking, noted that the market showed a considerable rebound on Monday, ending their five-session losing streak. This recovery was supported by declining crude oil prices following temporary easing in geopolitical tensions across the Middle East.

Mishra further pointed out that positive sentiment was boosted by encouraging quarterly earnings from select companies. The renewed buying activity witnessed specifically within IT stocks helped provide momentum to the overall market recovery.

Critical Technical Levels and Risk Management​

Technically, the Nifty has staged a healthy rebound after successfully defending the crucial trendline support level around the 23,600 mark. However, analysts caution that the index continues to trade below immediate resistance band of 24,000 to 24,150.

This critical zone coincides with both the 20-day and 100-day DEMA, suggesting a significant hurdle for bulls must be cleared before further recovery can be established. A decisive close above this range could facilitate a rally towards the 24,400 level. On the downside, the region between 23,600 and 23,800 is expected to act as immediate support during any profit-taking corrections.