Markets recover partially, but still down 1.4%: Key reasons behind mild rebound
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Nifty reclaimed the 24,400 mark, considered a key technical level by market participants.
- Sensex and Nifty trimmed early losses after sharp opening fall.
- Value buying and technical support aided market recovery.
- Nifty reclaimed 24,400, but volatility remains high.
The equity benchmark indices Sensex and Nifty recovered part of their early losses on Wednesday amid value buying at lower levels, though both were still down nearly 1.4 percent in trade.
The Sensex had plunged 1,700 points, or 2.24 percent, to hit an 11-month low of 78,443.2 in early trade. The broader Nifty slumped 2.25 percent to a 10-month low of 24,305.4.
At around 2 pm, the Sensex was down 1,234.38 points or 1.54 percent at 79,004.47, while the Nifty was at 24,447.15, down 418.55 points or 1.68 percent.
Key factors behind market recovery
1) Value buying: Some buying interest emerged after a sharp fall at the open, helping the indices trim a portion of the losses.
2) Technical levels: The Nifty reclaimed the 24,400 mark, considered a key technical level by market participants.
Anand James, Chief Market Strategist at Geojit Investments, said recovery attempts following the gap-down opening would need to sustain above the 24,500 level to prevent further weakness. Failing this, the Nifty could slide towards the 24,000–23,550 range, he said. He also advised caution amid heightened volatility and the possibility of sharp swings.
3) Crude movement: In the commodities market, Brent crude, the global oil benchmark, recovered marginally from earlier losses. It was trading 0.87 percent higher at USD 82.11 per barrel.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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