Sensex, Nifty snap 2-week losing streak to log best day in 5 months: What should investors do now? Experts weigh in | Stock Market News

Stock market today: Domestic equity benchmarks Sensex and Nifty 50 posted their best session since early June on Friday, November 22, snapping a two-week losing streak. Easing worries about credit risks from exposure to Adani Group stocks lifted heavyweight financials. Market heavyweights Reliance Industries, Infosys, and Tata Consultancy Services (TCS) also lifted indices.

The NSE Nifty 50 rose 2.39 per cent to 23,907.25, while the BSE Sensex gained 2.54 per cent to 79,117.11. The rise pushed Nifty and Sensex to weekly gains of 1.6 per cent and two per cent after two weeks of losses. The 30-share BSE Sensex reclaimed 79,000, driven by an across-the-board rally and lower-level value buying. Traders said that strong buying by domestic institutional investors and a firm trend in the US markets also supported the sentiment.

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Sensex, Nifty post best day in 5 months

The Sensex opened at 77,349.74 against its previous close of 77,155.79 and jumped 2,062 points, or 2.7 per cent, to 79,218.19. The Nifty 50 opened at 23,411.80 against its previous close of 23,349.90 and climbed 606 points, or 2.6 per cent, to 23,956.10. All the 30 Sensex firms ended in the green.

Hectic buying in blue-chip counters like Reliance Industries and tech shares boosted market sentiment. State Bank of India, TCS, Titan, ITC, Infosys, Larsen & Toubro, Reliance Industries, and Bajaj Finance were the biggest gainers.

Shares have slipped into correction territory in recent sessions on lacklustre corporate earnings and sustained foreign selling. The blue chips hit their lowest since early June on Thursday after the US indicted billionaire industrialist Gautam Adani and seven others on alleged bribery charges. The Adani Group denied the allegations, calling them “baseless.” Most of the listed Adani group firms ended higher, bouncing back from the sharp fall on the previous day.

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Ambuja Cements surged 3.50 per cent, ACC jumped 3.17 per cent, Adani Enterprises climbed 2.16 per cent, Adani Ports (2.05 per cent), Adani Total Gas (1.18 per cent) and NDTV (0.65 per cent) on the BSE.

Still on a weekly basis, Adani Enterprises and Adani Ports fell 21.2 per cent and 10.1 per cent, respectively, leading the list of Nifty 50 laggards. On the day, information technology (IT) rose 3.3 per cent, after data showed strength in the labour market in the US, a key source of revenue for the sector.

The overall market capitalisation (m-cap) of BSE-listed firms rose to nearly ₹432.7 lakh crore from ₹425.4 lakh crore in the previous session, making investors richer by about ₹7.3 lakh crore in a single day.

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Global cues provided some relief as oil prices rose, with Brent crude up 1.95 per cent to $74.23 per barrel amid geopolitical tensions between Russia and Ukraine. The dollar index climbed to a 13-month high of 107, supported by strong labour market data in the US, while the rupee appreciated marginally to close at 84.45 per dollar.

“This recovery was marked by a sharp rebound above the critical 200-day EMA, supported by strength in banking and IT stocks. Bargain hunting in heavyweight stocks at attractive valuations boosted investor sentiment. Rising dollar index enhanced the appeal of IT stocks,” said Vishnu Kant Upadhyay, AVP – Research and Advisory at Master Capital Services Ltd.

According to the D-Street expert, market sentiment was buoyed by exit polls from the Maharashtra election, indicating a likely victory for the Mahayuti alliance. This would mark the BJP-led NDA’s second consecutive state assembly win, following Haryana, which is seen as a positive signal for renewed government-led capital expenditure initiatives.
 

What should investors do amid market rebound? Experts weigh in

The relentless selling by foreign investors continues, with the selling spree reaching a record continuous 37 days. But the market has only corrected about 11 per cent from the September peak. “This is a correction, not a crash. The mother market US is bullish with 25.43 per cent return year-to-date (YTD). These factors suggest that the undertone of this market is positive,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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According to Vishnu Kant Upadhyay of Master Capital Services Ltd, as indicated by technical, key indices such as the Nifty and Sensex were trading in oversold zones due to long selling pressure in the previous periods. Also, the recent economic data indicated continued strength in India’s economy and stability in major economies like the US. 

“The Indian markets showed a bullish rally today, significantly influenced by the performance of global markets. Also, many participants who had taken short positions in the market in the previous periods were forced to cover their positions as indices began rebounding. This further accelerated the upward momentum, creating a sharp price spike,” added Vishnu Kant Upadhyay.

Considering the headwinds the market is facing, a sustained recovery is unlikely. The strength in the broader market should not be confused with the fundamental strength of the segment. According to Dr V K Vijayakumar of Geojit Financial Services, the strength of the broader market, particularly the midcaps, is due to liquidity and not fundamentals. Fundamental strength and safety are in large caps. Banking and IT are fairly valued.

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According to Krishna Appala, Senior Research Analyst, Capitalmind Research, midcap 150 and smallcap 250 dropped approximately 11-13 per cent from recent highs. The ongoing correction, driven by valuation concerns and weaker-than-expected earnings, has created a challenging environment for investors. 

While valuations in some sectors have seen meaningful corrections, they may still not warrant aggressive buying. However, opportunities exist in specific sectors and broader themes that hold long-term potential, particularly in areas that have experienced significant price adjustments but remain fundamentally strong.

“Despite its recent underperformance, the IT sector is poised for recovery as global headwinds ease in the medium term. Changes in international budgets and policy shifts will likely influence the sector’s prospects,” said Appala.

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Investors are cautiously adding to positions in areas that offer greater clarity on earnings visibility, especially where the longer-term structural story remains intact. While patience is essential, the sector’s adjusted valuations make it an area worth monitoring closely.

“In the broader market, corrections create opportunities to accumulate quality stocks with strong fundamentals and resilience to macroeconomic pressures. Investors should focus on sectors aligned with structural themes such as urbanization, infrastructure, and consumption growth. Strategic portfolio adjustments, disciplined investing, and a long-term perspective are critical to navigating the current environment,” added Appala.

Technical View

Nifty is nearing its immediate resistance at the 20 DEMA around 24,050. A decisive breakout could push it toward 24,350, but failure may trigger profit booking. “Traders should maintain a stock-specific approach, focusing on IT and banking, which exhibit stronger momentum while being selective in other sectors,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

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State election results on Monday could influence the market’s direction, especially in the early hours. Rupak De, Senior Technical Analyst, LKP Securities, said, “Nifty witnessed a strong recovery as the index moved back above the 200DMA, indicating an improving trend. Nifty has broken out of a few days of congestion on the daily timeframe. The RSI has entered a bullish crossover near the oversold zone, suggesting positive momentum. 

“The sentiment appears favourable for a meaningful rally in the short term as long as the index stays above 23,600. Immediate resistance is seen at 23,960–24,000. A decisive move above 24,000 could trigger a rally toward 24,500. On the downside, supports are placed at 23,750 and 23,550,” said De.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.