Sensex rises 200 pts from day's low, Nifty reclaims 25,600: Three reasons behind partial market recovery

Sensex rises 200 pts from day's low, Nifty reclaims 25,600: Three reasons behind partial market recovery

Benchmark indices Sensex and Nifty staged a partial recovery on February 19 from day's low as buyers found comfort at lower levels. Sensex rose 200 points from day's low while Nifty reclaimed the all-important 25,600 level.

At 1:24 pm, the Sensex was down 667.52 points or 0.8% at 83,066.73, and the Nifty was down 188.75 points or 0.73% at 25,630.60. About 1,370 shares advanced, 2,341 shares declined, and 147 shares were unchanged.

Three reasons behind partial market recovery:

1. Value buying

Value buying emerged on Indian stock markets as buyers found comfort at lower levels.

2. FII buying

Foreign Institutional Investors (FIIs) extended their buying activity for the second straight session on February 18, with net purchases worth ₹1,154 crore. Domestic Institutional Investors (DIIs) also remained net buyers for the fifth consecutive session, investing ₹440 crore in equities.

3. Technical level

From a technical perspective, Nifty took support at 25,600 level.

"The 25,600–25,500 zone has strengthened as a solid accumulation base. Nifty is trading above its 10- and 20-day EMAs, reflecting improving short-term momentum. However, immediate resistance is placed at 25,850. A decisive close above this level could trigger fresh short covering and push the index higher. The RSI is hovering near the 50 mark, indicating room for further upside upon breakout," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.