Sensex Today | Stock Market Live: GIFT Nifty hints flat to negative start; US, Asian markets gain

Markets witnessed a volatile session on Monday but ended with gains of over 1%. The Nifty opened on a muted note amid mixed global cues and elevated crude oil prices, and slipped lower in early trade. However, sentiment improved significantly in the afternoon, leading to a strong rebound. The index eventually surged to close near the 22,968 level, gaining over 1%. Sectorally, most sectors participated in the recovery, with realty, financials, and banking emerging as the top gainers. Broader markets also joined the rebound, with midcap and smallcap indices advancing nearly 1.5% each, supported by improved market breadth and selective risk appetite.

The recovery was primarily driven by reports of a potential ceasefire framework in the Middle East, which helped stabilize crude prices after the initial uptick and improved global risk sentiment.

Additionally, stability in bond yields and continued sector-specific triggers, including positive business updates, further aided the up move. However, concerns around foreign institutional outflows, currency volatility, and potential earnings downgrades continue to linger in the background.

The rebound over the past two sessions is encouraging; however, a decisive cool-off in crude oil prices and a corresponding decline in India VIX—still at elevated levels—remain critical for a sustained recovery. Going ahead, a break above the 23,000 mark could further extend the up move towards the 23,400–23,500 zone, where the hurdle of the short-term moving average (20 DEMA) is placed. On the downside, support is seen in the 22,500–22,000 range.

Given the elevated volatility, traders are advised to maintain a cautious stance and focus on stock-specific opportunities—favoring relatively strong counters for long positions and laggards for shorting opportunities.