- The Indian market successfully snapped a three-day losing streak today, with the Nifty 50 reclaiming the psychological 25,650 level.
- A massive late-session rally in Financials and Energy stocks wiped out early morning jitters, adding over ₹1.8 lakh crore to investor wealth.
- Power Grid emerged as the top index performer, surging nearly 5%, while HDFC Bank provided the heavy lifting to stabilize the benchmarks.
After a bruising week that saw the benchmarks tumble on “AI disruption” fears, Dalal Street found its footing this Monday. The Nifty 50 index rallied 211.65 points (0.83%) to finish at 25,682.75, while the S&P BSE Sensex staged a massive 1,057-point recovery from its intraday low to settle 650.39 points (0.79%) higher at 83,277.15.
Why the Market Bounced: The “Value” Rotation
The rally wasn’t just a random bounce; it was a calculated move by investors into “safe-haven” large caps. While the IT sector remains in a bear market, down nearly 14% YTD, investors are rotating capital into Power, PSU Banks, and Realty.
Thirteen out of 15 sectoral gauges ended in the green today. The Nifty PSU Bank index led the charge with a 1.5% gain, followed by strong buying in Financial Services and Oil & Gas. This shift suggests that while tech is struggling with the “Anthropic shock” and AI threats, the traditional engines of the Indian economy remain robust.
The Volatility Factor: India VIX and Breadth
Despite the triple-digit gain in Nifty, the underlying “fear gauge” tells a story of caution.
- India VIX: The volatility index edged up 0.28% to 13.33, indicating that traders are still hedging against potential global shocks.
- Market Breadth: Interestingly, the breadth remained negative on the BSE, with 2,510 stocks declining against 1,792 advances. This “narrow rally” shows that today’s gains were primarily driven by index heavyweights like Reliance Industries and Axis Bank rather than a broad-based market recovery.
Nifty 50 Technical Outlook: The Path to 26,000
Technically, today’s close is a “relief candle” on the daily charts. By ending above 25,650, the Nifty has defended a critical support zone that experts say is essential for maintaining the medium-term bullish outlook.
The Resistance: The next major hurdle is the 25,750–25,800 band. A sustained move above 25,800 is required to officially declare the correction over.
The Support: On the downside, 25,400 remains the “line in the sand.” If the index slips below this again, a deeper correction toward the 200-day EMA at 25,200 could be triggered.
Can Nifty 50 Reclaim the 26,000 Milestone?
After snapping a three-day losing streak this Monday, the Nifty 50 enters a technically sensitive week with all eyes on the 25,800 resistance zone. While today’s “bullish engulfing” candle suggests a reversal is underway, the index must decisively clear the 50-day EMA at 25,677 to sustain momentum toward the 26,000 mark.
Investors should brace for heightened volatility as market triggers, including the US Federal Reserve meeting minutes and the RBI MPC minutes, are set to dictate the trend. If the Nifty slips below the 25,400 support, a deeper liquidation toward the 200-day EMA at 25,200 remains the primary risk for the February series.
Power Grid was the top gainer, jumping 4.74% to close at ₹300.80.
Yes, the Nifty IT index continues to struggle, hitting 10-month lows due to global routs and AI-related earnings concerns.
The Sensex rose 650.39 points to settle at 83,277.15, rebounding from three consecutive days of losses.