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Trade Setup for March 25: Nifty rebound sparks hope, but 23,500 holds key to trend reversalTuesday's rebound may support bulls, but a sustained move above 23,500-23,600 is key to confirm a near-term bottom. Failure to hold these levels could drag the index back to 22,600-22,500, analysts said.By Meghna Sen  March 24, 2026, 8:30:37 PM IST (Published)2 Min ReadAfter Monday's sharp selloff, the Nifty 50 staged a relief rally on Tuesday amid hopes of de-escalation in the West Asia conflict, ending 399 points higher at 22,912.

The index opened with a strong upside gap of 366 points but quickly gave up nearly 275 points from the early highs in the first half.

However, bulls regained control in the latter part of the session, with the index recovering over 400 points from the day's low of 22,624 amid heightened volatility.

Despite the sharp rebound, the index faced resistance near the 23,000 mark.

Among the gainers, IndiGo, L&T, and Bajaj Finance led the rally, while Coal India, Power Grid, and Adani Enterprises ended as top laggards.

All sectoral indices closed in the green, led by Media, Private Banks, and Auto stocks. Broader markets outperformed, with the Nifty Midcap 100 rising 2.60% and the Nifty Smallcap 100 gaining 2.63%.

Shares of Kotak Mahindra Bank surged over 3% after brokerage firm Nomura upgraded the stock to 'Buy'. HDFC Bank snapped its four-day losing streak, advancing 3% during the session.

In the currency market, the rupee recovered slightly, gaining 10 paise to settle around 93.87 against the dollar.

This comes after it hit a record low near 94 in the previous session, supported by a nearly 10% decline in crude oil prices following signals of de-escalation from US President Donald Trump on Iranian energy targets.

Going ahead, key factors to watch for market direction include crude oil price trends, foreign institutional investor flows, and developments in US-Iran negotiations.

According to Nagaraj Shetti of HDFC Securities, Tuesday's rebound could encourage bulls, but a sustained move above 23,500-23,600 is crucial to confirm a near-term bottom reversal.

Failure to hold higher levels may drag the index back towards 22,600-22,500.

Rupak De of LKP Securities said the near-term direction remains uncertain and will largely depend on Wednesday's opening. A negative start could trigger bearish sentiment, while a positive opening may support short-term optimism.

Vinay Rajani of HDFC Securities added that while the bounce has raised hopes of a pullback, follow-through buying will be essential to signal a meaningful trend reversal.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsBSE SensexNifty 50share market todayTrade setup