Market recovery: Sensex pops 1,113 pts, Nifty up 327 pts; top reasons here

Stock market recovery &  Market UP Today: Key benchmark indices – Sensex and Nifty50 – recovered on Tuesday, November 19, 2024, after falling for previous seven consecutive sessions.

 

The recovery in the key indices, analysts believe, came on the back of upbeat global markets. Ambreesh Baliga, independent analyst said, "The recovery in the markets is merely a natural rebound following a seven-day losing streak. The primary driver for this recovery appears to be the positive performance of global markets."

 

The BSE Sensex gained as much as 1,112.64 points, or 1.43 per cent to hit an intraday high of 78,387.63 levels. On the other hand, Nifty50 has risen 1.39 per cent, or 326.85 points to an intraday high of 23,780.65.  Market LIVE Updates

 

 

Mirroring benchmarks, broader markets also rose. Nifty MidCap gained 1.83 per cent to hit an intraday high of 55,037.15 levels, while Nifty SmallCap rose 2.18 per cent to hit an intraday high of 17,889.50 levels.

 

Most of the sectors gained too. Nifty Media was the top sectoral gainer, surging 3.70 per cent to an intraday high of 1,969.30 levels. Similarly, Nifty IT, Auto, PSU Bank, Realty, Consumer Durables, Oil & Gas rose in the range of 1.83 per cent-2.23 per cent.

 

Given this, here are the top three reasons behind the market recovery today:

 

Upbeat Global markets

 

The Asia-Pacific markets were mostly trading higher on Tuesday, mirroring gains on Wall Street. Australia's ASX 200 was up 0.89 per cent, while Japan's Nikkei 225 gained 0.49 per cent, and the Topix added 0.61 per cent. South Korea's Kospi edged up 0.07 per cent.  

 

Hong Kong's Hang Seng Index fell marginally (0.04 per cent), and mainland China's CSI 300 dipped a little over 1 per cent.

 

Overnight in the US, the Nasdaq Composite recovered from a challenging week, closing 0.6 per cent higher, supported by gains in Tesla's stock. The S&P 500 increased 0.39 per cent. Meanwhile, the Dow Jones Industrial Average slipped 0.13 per cent.

 

Deepak Jasani, head of retail research at HDFC Securities said, "This recovery is a natural response after seven consecutive days of market decline. Additionally, the rally seems to have been bolstered by strong performances in Asian and US markets."  Indian Hotels, Federal Bank, Coforge from BSE Midcap index hit record highs

 

Technical rebound from oversold zone

 

Anand James, chief market strategist at Geojit Financial Services, observed that the Nifty's attempt to push higher yesterday lacked strength, leading to its seventh consecutive negative close—the longest streak of declines since the current downtrend began on September 27. Despite this, James remains cautiously optimistic about a potential revival, citing the RSI as appearing bottomed out. However, he suggests capping the immediate upside target at 23,733–23,788 for now, while waiting for clearer signals to aim for 24,111. On the downside, if the index fails to hold above 23,565, recovery could be delayed, although a major collapse is less likely today.

 

Possible relief in FII selling

 

Though the data can only be verified at the end of the day, it seems foreign institutional investors (FII) selling, too, has taken a breather today. The average net sales by FIIs in the last two trading sessions stood at Rs 1,626.63 crore when compared with the average net sales of Rs 3,075.92 crore in the previous 9 trading sessions. Analysts were of the opinion that tapering of FIIs or fresh buying by them can trigger a reversal in the market down trend.