More than 200 smallcaps rise between 10-40% as broader indices outperform

"The domestic market finally closed in the green after weeks of relentless selling, primarily due to a rebound in Q3FY25 GDP and a recovery in consumption. The metal, capital goods, and energy sectors outperformed on account of optimism over China's stimulus and lower crude oil prices. A fall in the dollar index also sweetened investor sentiment towards emerging markets, while the US equity markets have declined due to uncertainty over Trump's economic policies," said Vinod Nair, Head of Research, Geojit Financial Services.

"On the tariffs front, the long-awaited tariffs were enacted but later backtracked by delaying their implementation, creating uncertainty among investors. Investors will keep a close eye on payroll data and US inflation to get cues on interest rates."

"The domestic market gradually recovered from its oversold levels; however, a decisive upward momentum will be based on the recovery in corporate earnings and an ease in tariffs uncertainty. The premium valuation of broader indices may restrict a broad-based market recovery in the short run, while large caps appear attractive," he added.

The BSE Small-cap index rose nearly 6 percent with Coffee Day Enterprises, Triveni Turbine, Vadilal Industries, Man Industries (India), Sandur Manganese, Anupam Rasayan India, Bharat Wire Ropes, MPS, Alivus Life Sciences, Windlas Biotech, Himatsingka Seide, PTC Industries, Sun Pharma Advanced Research Company, Jyoti CNC Automation, Nacl Industries, Zen Technologies rising between 20-40 percent.

On the other hand, Gensol Engineering, EKI Energy Services, Jindal Worldwide and Suratwwala Business Group fell between 22-40 percent.

Where is Nifty50 headed?

Rupak De, Senior Technical Analyst at LKP Securities

The India Nifty remained volatile within a narrow range, closing with a small-bodied candle on the daily chart. Significant put writing was seen at the 22,300 strike, while decent call writing was visible at the 22,800 strike. The sentiment remains positive, with the potential to reach higher levels in the short term.

On the higher end, immediate resistance is seen at 22,700–22,750. On the lower end, support is placed at 22,400, below which the index may lose momentum.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

Technically, this market action signal a consolidation movement at the overhead resistance. The immediate hurdle of opening downside gap of 28th Feb has been filled and Nifty closed above it at 22500 levels.

The underlying short-term trend of Nifty remains positive. A sharp move above 22750-22800 levels is likely to bring bulls back into action. Any dips from here could find support around 22250 levels

Devarsh Vakil, Head of Prime Research, HDFC Securities

Nifty has staged an impressive recovery of more than 650 points from its recent swing low of 21,964. The short-term trend remains bullish as momentum continues to build.

The index now faces key resistance in the 22,700-22,725 range, where the 21-day exponential moving average (EMA) coincides with the previous swing low—a technically significant level. Meanwhile, strong support for Nifty continues to be at 22,300.

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