Major rebound on D-Street; Sensex bounces back 1500 pts from day's low

Sensex, Nifty Today: Indian equity benchmarks opened on a weak note on Monday and remained highly volatile through the session, as investors weighed global tensions and continued foreign fund outflows.

The BSE Sensex opened at 74,415.79, down 148.13 points from its previous close of 74,563.92, while the Nifty 50 started the session at 23,116.10, lower by 35 points from the previous close of 23,151.10.

Both indices saw sharp intraday swings. The Sensex slipped to a low of 73,949.76 during early trade, while the Nifty touched an intraday low of 22,955.25 before recovering later in the session.

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Why markets were volatile

According to Zee Business Managing Editor Anil Singhvi, the recent sharp correction had pushed the market into an oversold zone, leading to a mild recovery around the key 23,000 level on the Nifty.

Singhvi said the selling pressure eased slightly as concerns around the ongoing geopolitical conflict showed signs of stabilising, which helped markets find temporary support.

However, he cautioned that the recovery remains fragile as strong crude oil prices continue to cap gains. Elevated oil prices remain a key concern for markets.

Heavy selling by foreign institutional investors (FIIs) in the previous session has also kept investors cautious.

Singhvi noted that after a one-sided fall, the first phase of recovery often sees selling at higher levels as traders who were stuck at elevated prices use the bounce to reduce positions. This is contributing to the sharp intraday swings in the market.

He added that midcap and smallcap stocks are still struggling to attract strong buying interest, which is limiting a broader market rebound.

Key levels to watch

Singhvi said the immediate support zone for the Nifty lies between 22,800 and 23,000, while Bank Nifty has support in the 53,100–53,350 range.

On the upside, Nifty faces a near-term resistance band between 23,275 and 23,350. If the index moves above this range, traders may consider selling in the 23,500–23,650 zone.

For Bank Nifty, the immediate resistance lies between 54,375 and 54,475, with a potential selling zone seen around 54,700–54,750 if the index moves higher.

According to Singhvi, a close below 23,100 on the Nifty or 53,650 on Bank Nifty would signal renewed weakness. On the other hand, a close above 23,500 for Nifty and 54,750 for Bank Nifty could indicate that the recent downtrend is starting to stabilise.