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The broader market indices staged a sharp reversal on Thursday, with the Sensex soaring nearly 1,400 points intraday and the Nifty reclaiming 25,000 for the first time in seven months as heavy buying in metal, auto, IT and realty stocks lifted investor sentiment.

The trends are now showing that there is a revival with the reclaiming of 25,000 yet again. The Sensex closed 1,200.18 points or 1.48% up at a seven-month high of 82,530.74 after rallying 1,387.58 points or 1.7% to hit the day's high of 82,718.14 in the second half of the session. The Nifty surged 395.20 points or 1.6% to close at a seven-month high of 25,062.10. The index had previously closed above 25,000 on 17 October 2024.With geopolitical news simmering down to more acceptable levels, the market is seen reviving at this juncture.

The trends were under pressure, as can be seen from the charts below. However, as we had mentioned, there were important supports around 24,500. As the rebound from that level was quite strong yesterday, this level now assumes more significance for the coming sessions.

The charts indicate the consolidation that lasted nearly 2.5 trading sessions did not give up and the prices slid into cloud support, taking help from positive tailwinds to produce a sharp upside. As the rounding pattern formation seen on the intraday charts is holding, we can now look at the coming session with a positive frame of mind.

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A mix of positive global cues and Q4 results is helping the market gain firmer footing. The trends are very much in line, we can expect the momentum to continue. Option data also hints at some call liquidation and a shift in the bias to the upside as the 25,000 zone has now turned into a support. With the PCR at 1, we still need to see a continuation to enable the bullish bias to sustain. At the moment we are once again back to the situation that we saw on Monday, prompting us to move ahead with caution, but with a more bullish bias.

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Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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