Markets are still 'sell on rise' despite today's surge, says analyst; here's a level for long-only investors

Stock market today news: Sensex, Nifty rise in trade. 

• Sensex and Nifty rebounded over 1 percent.
• Metal, auto, and energy stocks led gains; IT shares lagged.
• Nifty faces resistance at 24,950; support seen at 24,530.

Did our AI summary help?

The benchmark equity indices Sensex and Nifty rebounded on Thursday, settling more than 1 percent higher, in line with a recovery in global markets after recent losses linked to tensions in West Asia. The indices recovered sharply amid signs of possible de-escalation in the conflict.

Snapping its four-day losing streak, the Sensex jumped 899.71 points or 1.14 percent to settle at 80,015.90. During the day, it surged 1,187.64 points or 1.5 percent to touch 80,303.83.

The Nifty climbed 285.40 points or 1.17 percent to close at 24,765.90, breaking a three-day decline.

However, analysts said the broader market structure remains weak.

Rupak De, Senior Technical Analyst at LKP Securities, said the “sell on rise” strategy remains valid for the market despite Thursday’s gains.

"The ‘sell on rise’ approach remains valid until the Nifty decisively moves above 25,000," he said.

"The overall chart structure has not changed materially, as the index continues to trade well below the 200-day moving average as well as the former trendline support, which now acts as resistance. On the RSI, an initial sign of positive divergence is visible; however, it is not yet confirmed, keeping momentum uncertainties intact. On the downside, support is placed at 24,530 and 24,300. On the upside, resistance is seen at 24,850 and 25,000," he added.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the 24,550–24,530 zone will act as an important support level for the index.

"On the upside, the 24,920–24,950 zone will act as a stiff resistance. Any sustained move above 24,950 could extend the pullback rally towards the 25,100 level," he said.

Sector-wise, buying was largely seen across the board. Metal, auto and energy stocks were among the key gainers, while IT shares traded subdued, limiting the overall momentum.

In the broader market, midcap and smallcap indices advanced about 1.5 percent each, offering some relief after the recent decline.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.