Indian equity markets rebounded on Thursday after three consecutive sessions of losses. The Sensex gained around 300 points while the Nifty 50 moved back above the 24,000 mark in early trade. At 10:21 am, the Sensex was up 0.35% at 76,820.99, while the Nifty was higher by 0.35% at 23,996.80. Buying in banking stocks, stronger global markets and easing crude prices are the key factors that supported investor sentiment.

1. Strong Buying in Banking Stocks

Banking stocks emerged as one of the biggest drivers of today’s recovery. The Nifty Bank index gained around 1%, while both private and PSU banking indices also advanced. ICICI Bank, Axis Bank, HDFC Bank and SBI were among the major gainers. The strong performance came after banks mobilised a much higher-than-expected amount through the RBI’s foreign currency deposit and borrowing schemes.

2. Record FCNR(B) Inflows Boost Sentiment

A major positive for the market was the record $127.23 billion mobilised through FCNR(B) deposits under the RBI’s special programme. Total foreign currency inflows through the related schemes reached around $136.4 billion. The large inflow is expected to improve banking liquidity, support lending and help strengthen India’s foreign exchange position. This also improved confidence around the rupee and banking sector.

3. Rupee Hits a Two-Month High

The Indian rupee strengthened sharply to around Rs 94.30 against the US dollar, supported by strong foreign currency inflows. A stronger rupee is positive for the Indian economy because it can reduce pressure from imported commodities such as crude oil. It also gives foreign investors greater confidence about investing in Indian markets.

4. Crude Oil Prices Ease

Brent crude slipped marginally to around $95.47 a barrel after rising sharply in the previous sessions. Although oil remains at an elevated level because of West Asia tensions, even a small decline provided some relief to Indian investors. Lower crude prices can help reduce India’s import bill, inflation pressure and costs for several businesses.

5. Positive Global Market Cues

Global markets also supported today’s recovery. Asian markets moved higher after Wall Street ended Wednesday’s session in positive territory. US Treasury yields also eased from recent highs, giving investors some relief from concerns about tighter monetary policy. The improved global mood helped Indian equities recover from the recent selling pressure.

Key Technical Analysis

Sensex Technical Outlook

The Sensex has recovered after falling for three straight sessions and is trading near 76,800. Immediate support is seen around 76,500, while 76,900-77,000 is an important resistance zone. A sustained move above 77,000 could improve the short-term trend, while failure to hold 76,500 may bring selling pressure back into the market.

Nifty 50 Technical Outlook

The Nifty has reclaimed the 24,000 level, which is a positive sign for the bulls. However, the broader trend remains cautious after the recent correction. The immediate resistance zone is around 24,140-24,200. A decisive move above this area could open the way towards 24,300-24,350. On the downside, 23,800 remains the key support level.

Bank Nifty Technical Outlook

Bank Nifty is showing stronger momentum than the broader market, supported by buying in major lenders. The index had closed at 57,172 on Wednesday and is recovering today. The 57,300-57,400 zone is the first resistance area, while 56,800-56,900 remains an important support zone. Sustained buying in HDFC Bank, ICICI Bank and SBI could further improve the banking index.

Today’s Key Takeaway

Today’s recovery shows that investors are willing to buy after the recent correction, especially in banking stocks. Strong FCNR(B) inflows, a stronger rupee, softer crude prices and better global cues have improved sentiment. However, oil prices remain high and West Asia tensions continue to pose a risk. For the Nifty, holding above 24,000 and breaking 24,200 will be important for the next leg of the recovery.

Unlock profitable opportunities every day! Tradz by EquityPandit provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Tradz by EquityPandit and start winning now!