Does today's final hour buying suggest markets made short-term bottom ahead of Budget? Here's what analysts say

Stock market today news: Sensex, Nifty see value buying. 

• Sensex and Nifty closed higher after sharp volatility on derivatives expiry day.
• Nifty settled at 25,175.40, Sensex at 81,857.48, aided by late buying interest.
• Key support for Nifty seen at 24,900; resistance at 25,300 according to analysts.

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The equity benchmark indices Sensex and Nifty witnessed sharp volatility on the monthly derivatives expiry day but managed to settle higher, offering some relief after the recent decline.

The Nifty opened on a flat note amid mixed global cues and swung sharply between gains and losses through the session before settling higher by 126.75 points, or 0.51 per cent at 25,175.40.

The Sensex rose 319.78 points, or 0.39 percent, to settle at 81,857.48. During the day, the index touched a high of 82,084.92 and a low of 81,088.59.

Market participants attributed the recovery largely to buying interest in the final hour, raising questions over whether a near-term bottom may have been formed ahead of the Union Budget.

Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd, said the Nifty is currently hovering around its long-term moving average, the 200-day exponential moving average (DEMA), placed near the 25,150 level.

"The immediate hurdle is seen around 25,350, and a decisive move above this zone could open the door for a recovery towards 25,600. On the downside, the 24,750–24,900 zone is expected to provide support in case of renewed weakness," Mishra said.

He added that in view of mixed global cues and heightened intraday volatility, investors should adopt a selective, stock-specific approach and focus on relatively stable sectors, while maintaining strict risk management until clearer trends emerge.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the Nifty remained choppy for most of the session on monthly expiry before short covering in the final hour helped the index close near the 25,250 level.

"The 25,190–25,200 zone, which acted as a support in the previous session, turned into a strong resistance for a major part of the day before the index managed to close higher," Shah said.

He noted that the daily chart showed a sizeable bullish candle with long lower wicks, indicating buying interest at lower levels. "Importantly, the index has managed to close above the 200-day EMA zone," he added.

According to technical analysts, the key support for the Nifty lies in the 24,950–24,900 zone, which coincides with an upward-sloping trendline drawn from the swing lows of August 8 and August 29. A sustained break below this level could drag the index towards 24,700 and then 24,500 in the near term.

On the upside, the 25,250–25,300 zone is expected to act as a strong resistance, potentially capping any immediate pullback attempts.

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