Stock market: Sensex up 446 pts, snaps 3-day losing run; Nifty tops 24,800; what's ahead?

Domestic equity benchmarks Sensex and Nifty50 snapped their three-day losing streak to end higher on Tuesday, thanks to short coverings and improved global cues.

The BSE Sensex surged 446.93 points, or 0.55 per cent, to close at 81,337.95. The NSE Nifty50 climbed 140.20 points, or 0.57 per cent, to settle at 24,821.10. Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty formed a Bullish Engulfing pattern on the daily chart, suggesting the possibility of a meaningful bullish reversal. On the 2-hourly chart, the index has started a recovery supported by a positive divergence. 

“In addition, a hidden positive divergence is visible on the daily chart, further indicating the potential for a smart recovery in the short term. On the higher side, Nifty may move towards 24,950–25,000. A decisive move above 25,000 could trigger a rally towards 25,200. On the downside, support is placed at 24,750," Rupak said.


Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking Private Limited, said that on the technical front, the Nifty has taken support at its 100-day EMA and closed above the key 24,800 level. 

“A bullish candle formation with strong volume suggests buying interest at lower levels. If the index sustains above 24,800, we could witness a further rally towards 25,000 and 25,200 in the near term. On the downside, 24,600 remains the immediate support; a break below this could invite further correction toward 24,200–24,160. The overall trend remains bullish, and buying on dips is recommended,” Matalia said.

Reliance Industries led the pack of Sensex gainers, rising 2.21 per cent to Rs 1417.95. Larsen & Toubro rose 2.13 per cent, followed by Asian Paints (up 1.81 per cent), Tata Motors (up 1.48 per cent), Adani Ports (up 1.42 per cent) and Tata Steel (up 1.28 per cent). 

Reliance Industries, along with HDFC Bank, Larsen & Toubro, Bharti Airtel and Tata Motors contributed most to the Sensex's surge. On the sectoral front, the BSE Bankex advanced 0.12 per cent, or 76.72 points, to close at 62,270.90. The BSE Realty index gained 1.64 per cent, or 115.78 points, to settle at 7,187.47.

Shares of Larsen & Toubro Ltd (L&T) ended higher at Rs 3495.10, rising 2.13 per cent on Tuesday after its energy arm, L&T Energy Hydrocarbon (LTEH), secured an ‘ultra-mega’ order from a client in the Middle East. In terms of valuations, L&T's project classification of a significant order is more than Rs 15,000 crore.

Vinod Nair, Head of Research at Geojit Investments Limited, said that amidst lingering uncertainties over the ongoing U.S.–India trade negotiations, the domestic equity market staged a modest recovery from intraday lows.

“Almost all the sectors ended in green, with metal, pharma, and realty leading the gains, while IT, financials, and FMCG lagged due to weak quarterly results. Investor sentiment remains cautious ahead of key global events, including policy decisions from the U.S. Fed and the August 1 reciprocal tariff deadline,” Nair said.


Siddhartha Khemka, Head - Research, Wealth Management at Motilal Oswal Financial Services Ltd, said the Indian equities rebounded after a three-day losing streak, with Nifty50 climbing 98 points to close at 24,779 (+0.4 per cent). The recovery was broad-based, led by value buying at lower levels. Notably, Nifty Realty (+2.6 per cent) bounced back after steep losses in the last few sessions. 

“Pharma stocks extended gains on follow-up buying, while select auto exporters remained in focus amid optimism around the recently announced US-EU trade deal. There is significant action in the primary market with five mainboard IPOs including the Rs 4000 crore NSDL IPO opening for subscription this week. Meanwhile, there is sustained selling pressure from FIIs with net outflows exceeding Rs 6000 crore on Monday,” Khemka said.

Out of 4,157 stocks traded on BSE today, 2,482 advanced, 1,521 declined while 154 remained unchanged.