Indian Markets Stage Sharp Recovery from Intraday Lows Driven by Bargain Hunting

Indian equity benchmarks, Nifty 50 and Sensex, staged a remarkable recovery on Friday, erasing substantial intraday losses. Nifty 50 surged over 200 points from its low, closing down only 0.07%, while Sensex ended down 0.11%. This turnaround was fueled by bargain hunters and short-covering. Nifty found crucial support around its 50-day EMA near 25,300, stimulating buying in financial, metal, and banking sectors. PSU Banks also gained on speculation about an FDI cap hike. Leading gainers included HDFC Bank, ICICI Bank, Bajaj Finance, Reliance Industries, and State Bank of India. Metals rallied 1.4%, while Nifty Financial Services rose 0.76%. Top decliners included Hindustan Unilever, Nestle India, and Asian Paints. Nifty Midcap 100 outperformed, but IT and FMCG lagged. The market showed significant intraday volatility with many stocks hitting 52-week highs and lows. Analysts remain cautious, citing mixed earnings, global cues, and ongoing FII outflows as headwinds. The Indian Rupee was volatile, and gold prices held steady. Key technical levels to watch are Nifty resistance at 25,600–25,620 and support at 25,300. Market participants await global developments, domestic earnings, and RBI policy. Impact: This news indicates a short-term rebound driven by technical factors and sector strength, but underlying headwinds like FII outflows and global uncertainty persist, suggesting continued volatility. Impact Rating: 6/10 Difficult Terms: Nifty 50: Index of 50 large Indian companies on NSE. Sensex: Index of 30 large Indian companies on BSE. Intraday Lows: Lowest price during a trading day. Bargain Hunters: Investors buying undervalued falling assets. Short-covering: Buying back previously short-sold securities. 50-day EMA: Average price over 50 days, weighted for recent prices. 20-day EMA: Average price over 20 days, weighted for recent prices. PSUs: Public Sector Banks, majority government-owned. FII Outflows: Foreign investors selling Indian securities. DII Support: Domestic investors buying Indian securities. High-wave candle: Candlestick pattern showing high volatility and indecision. SEBI: Securities and Exchange Board of India, market regulator.