Nifty under 25,600, Sensex snaps 3 days of losses as Nifty IT jumps 2% on improving global mood

Nifty, Sensex snap 3-day losing streak.

Dalal Street snapped a three-session losing streak on Monday, November 10, as the U.S. moves to end the longest federal government shutdown ever. Optimism fuelled rallies in Asian markets, leading Nifty 50 and Sensex to echo the positivity.

At close, the Sensex was up 288.45 points or 0.35 percent at 83,504.73, and the Nifty was up 78.15 points or 0.31 percent at 25,570.45

Most sectoral indices were mixed in trade. Nifty IT led the gains with a strong uptick, while Auto, Financial Services, Metal, Pharma, Healthcare, Consumer Durables and Oil & Gas also closed in the green, posting modest advances.

The shares of IT firm jumped, pushing the Nifty IT index up nearly 2 percent to emerge as the top sectoral gainer on the market today. The index has now snapped a six-session losing streak, as investor sentiment was boosted by hopes for a nearing end to the ongoing US government shutdown.

On the flip side, FMCG, Realty, PSU Bank and Media slipped into the red, with Media seeing the sharpest decline of the day. Overall, the sectoral picture showed selective buying with strength concentrated in IT and cyclicals.

Foreign institutional investors may rotate back into India, as the AI bubble looks ready to burst, as per experts. "The earnings growth currently happening in India and expected to gather momentum, going forward, can provide the fundamental support for a rally. Watch out for the leading names in banking and finance, telecom, capital goods, defence and automobiles," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

From a technical standpoint, Nifty continues to oscillate within a narrow range. As long as the index remains confined within this zone, directional clarity is likely to stay elusive.

"Unless the index decisively reclaims the 25,800–25,900 region, short sellers are expected to remain active, using intraday pullbacks as opportunities to initiate fresh positions," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

He added that a sustained breakdown below this mark could intensify selling pressure and extend the ongoing corrective phase. Conversely, only a decisive move above 25,800 would neutralize the prevailing bearish tone and revive near-term optimism.

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