Sensex recovers 200 pts from day's low, Nifty above 25,700: 3 key reasons behind market paring losses 

Stock Market Today News: Sensex, Nifty see value buying. 

The benchmark equity indices Sensex and Nifty pared part of their losses on Friday, helped by fag-end buying after a sharp sell-off over the past four sessions.

The domestic benchmarks were still trading in the red, but had recovered from the day’s lows. The Sensex climbed about 200 points from the intra-day low to trade at 83,605.62, while the broader Nifty hovered above the psychologically important 25,700 level, at around 3:15 p.m.

After a brief rebound in early trade, the Sensex had slipped 767.82 points or 0.91 percent to 83,413.14, while the Nifty fell 246.95 points or 0.95 percent to 25,629.90.

Key reasons behind market recovery

1) Optimism ahead of US Supreme Court ruling on Trump tariffs: Market sentiment was supported by expectations ahead of a key ruling by the US Supreme Court on President Donald Trump’s use of emergency powers to impose tariffs. The case will decide whether the President can invoke the International Emergency Economic Powers Act (IEEPA) to levy tariffs without congressional approval. During arguments in November, the justices had indicated scepticism over the authority to impose such duties.

Ajit Mishra, Senior Vice-President (Research) at Religare Broking, said export-oriented stocks had seen a rebound driven by hopes of potential relief on the tariff front.

"However, market participants should temper their expectations, as the US government has planned other legislative measures to maintain or even raise tariffs in the event of an adverse ruling," he said.

2) Easing geopolitical concerns: Geopolitical worries eased marginally after US President Donald Trump cancelled a second wave of attacks on Venezuela, citing a “sign of seeking peace”, and said major oil companies would invest in the country.

3) Value buying: Traders also resorted to value buying after four straight sessions of decline. Over the past four sessions, the Sensex and Nifty have fallen 1.8 percent and 1.7 percent, respectively.

Technical outlook

Devarsh Vakil, Head of Prime Research at HDFC Securities, said the Nifty had breached key technical support levels.

"The Nifty breached crucial support at its 50-day exponential moving average, currently at 25,911, and violated the previous swing low of 25,878 on the daily chart. The next meaningful support level appears near 25,700, which coincides with the December 2025 swing low. On the upside, the 26,000–26,050 zone is expected to act as strong resistance in the near term," Vakil said.

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