Stock market today: Investors mint ₹5.65 lakh crore as Nifty 50, Sensex rebound. What happens next?

After enduring its longest consecutive losing spell since February 2023, the Indian benchmark indices staged a recovery on Tuesday, November 19. Both the BSE Sensex and Nifty50 indices posted strong gains, driven by robust performances in IT, auto, and energy stocks.

The BSE Sensex bounced back significantly, rising 1,112.64 points, or 1.4 percent, to reach a day's high of 78,451.65. Meanwhile, the Nifty50 followed suit, climbing 256 points, or 1.4 percent, to an intra-day high of 23,780.65. This upturn marked a notable recovery after the Nifty50 had lost over 4 percent during its seven-session losing streak, the longest since early 2023.

Market capitalisation of BSE listed company soared ₹5.65 lakh crore to ₹4,34,74,485.58 crore today.

Broader market indices outshined the benchmark performances, with the Nifty Midcap index advancing by 1.8 percent and the Nifty Smallcap index posting an even stronger 2 percent gain.

Will this stock market rebound last?

Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the recent market movements suggest a lack of quick, sustained recovery potential. "The momentum that pushed the market to its record high of 26,216 in September has dissipated. While there might be short-lived recoveries, these are unlikely to persist due to ongoing FII selling and anticipated weak earnings growth in FY25. The market may consolidate at current levels with sideways movement, and stronger uptrends will only follow when data points to an earnings recovery," Vijayakumar remarked.

Offering a technical outlook, Hardik Matalia, Derivatives Analyst at Choice Broking, pointed to key support and resistance levels for the Nifty. "Nifty, after opening positively, finds support at 23,350, with further levels at 23,250 and 23,200. On the upper end, 23,550 acts as immediate resistance, followed by 23,650 and 23,800," Matalia noted.

From Axis Securities, Akshay Chinchalkar, Head of Research, offered a historical perspective, noting that the last time the Nifty experienced a seven-day losing streak was February 2023. This instance was followed by a relief rally, and according to decade-long data, similar downtrends have historically led to a rebound over the following five days. "Short-term momentum is currently deeply oversold, indicated by the index slipping below its regression channel drawn from the March 2023 lows. This makes a bounce statistically overdue. Maintaining support within the 23,200 - 23,300 range is critical, while 23,680 remains the immediate resistance to breach," Chinchalkar explained.

Sectoral Highlights: Gains Across the Board

All sectoral indices witnessed positive movement. The Nifty Media index was the top performer, soaring 3.7 percent. The Nifty Realty, IT, Auto, and Consumer Durable sectors also saw robust growth, each gaining over 2 percent. Other sectors such as Nifty Bank, Nifty Pharma, Nifty Oil and Gas, and Nifty FMCG added over 0.5 percent to their values, reinforcing the breadth of the market’s recovery.

Top Performers and Laggards

Within the Sensex components, M&M, Tech Mahindra, Adani Ports, Tata Motors, , and Titan emerged as the strongest performers, propelling the benchmark’s rise. In contrast, only four stocks, ICICI Bank, Tata Steel, SBI, and Bajaj Finserv traded in the red during the day, highlighting the overall bullish sentiment that spread across the trading floor.

Tuesday's recovery in Indian benchmark indices, driven by IT, auto, and energy stocks, signals a potential pause in the prolonged bearish trend. However, experts remain cautious, emphasizing that while short-term rebounds may occur, sustained upward movement hinges on supportive economic data and positive earnings momentum. Investors are advised to remain watchful of support and resistance levels and be prepared for potential sideways movement as the market seeks stability after a challenging spell.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.