Stock market today: Gift Nifty climbs 180 pts, tracks Asian rebound; Nifty, Sensex recovery likely

Thanks to a rebound in Asian markets, Gift Nifty was trading higher in Tuesday's trade, raising hopes of a recovery in domestic stocks following two days of relentless fall. Gift Nifty was trading 183 points or 0.76 per cent higher at 24,307, a day after the 50-pack Nifty declined 2.7 per cent on fears of US recession and unwinding of yen carry trade. 

Rajesh Bhosale, Equity Technical Analyst at Angel One said traders should use any rebound to reduce long positions. A Nifty level of 24,250 is seen as immediate resistance, he said adding that overcoming Monday's bearish gap of 24,350-24,700 would be a daunting task.

Earlier today Japan's Nikkei 225 climbed over 11 per cent intraday. It was later trading at 34,090.20, up 2,631.78 points or 8.37 per cent. South Korea's Kospi surged 81.30 points or 3.33 per cent to 2,522.85. As the day progressed, the mainland China's Shanghai Composite added 0.56 per cent to 2,876.81 while Hong Kong's Hang Seng advanced 0.88 per cent to 16,845.10, as investors judged the recent fall was unwarranted.  

"One must only invest if one has suitably long investment horizon to tide over periods of volatility in the interim. Investors with ability to hold for long term should look to invest over the next few weeks of correction in a systematic manner in pockets where valuations are not stretched. This is likely to be a medium term correction, which will provide long term investment opportunity for the patient investor," said Sandeep Bagla, CEO TRUST MF. 
 
Bagla felt investors must keep return expectation low in the short term, keep investing systemically over the medium term with an eye to reap benefits from the growth over a long period of time.

The bulls would love to brush the recent correction off and get ready to buy the dip like they have done each time since Covid, said Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities 

"However, when you look at the combined VIX, it tells you that this time is different and you must not rush to buy it. Wait for the prices to settle. You might get a better buying opportunity in few weeks," he said.