The Sensex and Nifty staged a strong recovery on December 23, ending a five-day losing streak. Buoyed by strong gains in banking, metal, and building stocks, the Sensex rose 750 points to close at 78,483.64, while the Nifty climbed 217 points to cross the 23,800 mark. The rally followed a tumultuous week in which the indices experienced their sharpest fall since June 2022, entering a technical correction. Dr. VK Vijayakumar, Chief Investment Strategist, emphasized, “A further rally is possible only if we have indications of improvement in economic growth, which is possible in early 2025.”
All sectors are trading green
Investors saw a broad recovery as all major sectors ended up in positive territory. The Nifty Bank, Metal, and Realty indices emerged as the top performers, gaining 0.8 percent, 1.2 percent, and 1.1 percent, respectively. Banking heavyweights like HDFC Bank, ICICI Bank, SBI, and Axis Bank made gains in the financial sector, while leading steel stocks like JSW Steel, Tata Steel, and Hindalco strengthened the steel index.
IT and FMCG join the rally
The Nifty IT index also gained around one percent, supported by strong performance from TCS, Infosys, and HCL Tech. Meanwhile, the FMCG sector rebounded by around one percent after months of underperformance, with key players such as Hindustan Unilever, ITC, and Nestle leading the charge.
Mid and small caps are participating
The medium- and small-cap indices showed a more optimistic view of the broader market, posting gains of 0.58 percent and 0.62 percent, respectively. These sectors have shown resilience, attracting investor interest amid a general bullish trend.
Top movers and laggards
Among individual stocks, Shriram Finance, JSW Steel, Hindalco, Bajaj Finance, and Tata Steel were the top gainers, delivering solid returns to investors. Conversely, laggards include SBI Life Insurance, Apollo Hospitals, NTPC, Cipla, and Hero MotoCorp.
Important levels to watch
Market analysts predict immediate support for the Nifty at 23,600, with possible resistance around 24,000 and 24,200. Bank Nifty is expected to find support at 50,500, while resistance levels are set at 51,200 and 51,800.
The day’s rebound shows renewed optimism, providing much-needed relief to investors after a challenging week.
Anand James, Chief Market Strategist, Geojit Financial Services, noted that the Nifty may try to pull back above the 200-day SMA at 23,835. “If the support rallies gain strength, expect 24,165, but not too much. Otherwise, the inability to float above 23,700 after attempts to look higher may be seen as a weak signal, but we see low hopes for another shock to the bottom. 21 Nov low 23,265 they may stay for a week.
