Closing bell: Sensex jumps 447 points, Nifty ends above 24,800

On Tuesday, the stock market ended on a strong note, with benchmark indices recording steady gains. The BSE Sensex rose 447 points, or 0.55%, to settle at 81,337, while the NSE Nifty increased 140 points, or 0.57%, to close at 24,821. Both indices recovered from early losses and moved higher throughout the afternoon, supported by gains in pharma, infrastructure, and IT stocks.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated, "Today, the benchmark indices bounced back sharply. The Nifty closed 140 points higher, while the Sensex rose by 447 points. Among sectors, almost all the major sectoral indices traded in positive territory, with Pharma, Healthcare, and Infra indices outperforming, each rallying over 1%."

The Bank Nifty index opened with a gap-down but saw buying interest after an initial fall and ultimately closed the session on a positive note at 56,222. "Technically, the index formed a bullish engulfing candlestick pattern on the daily chart and managed to close above the 56,200 level, indicating emerging strength. If the index manages to stay above today’s low of 55,843, a pullback rally could extend towards the 56,700 and 57,300 levels. Therefore, traders are advised to adopt a buy-on-dips approach in Bank Nifty as long as it remains above 55,843," said Hrishikesh Yedve, AVP Technical and Derivative Research.

Meanwhile, the volatility index, India VIX, cooled off by 4.45% to 11.53, indicating a drop in market volatility.

"Technically, after a muted open, the market took support near 24,600/80,600 and rebounded sharply. From the day's lowest point, the market rallied over 240/850 points. An intraday reversal formation after a long correction, coupled with a bullish candle on the daily charts, indicates a further uptrend from the current levels," said Chouhan.

"We believe that 24,700/81,000 and 24,650/80,900 will serve as key support zones for day traders. As long as the market trades above these levels, the pullback formation is likely to continue. On the higher side, 25,000–25,075/82,000–82,200 would be the key resistance zones for the bulls. For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. However, if the market falls below 24,650/80,900, sentiment could change. Below these levels, traders may prefer to exit their long positions," added Chouhan.