Stock market recap: Indian equities posted a strong rebound on Tuesday, led by a sharp rally in IT stocks after HCL Tech's quarterly results, as investors looked past higher inflation data.
Nifty 50 rose 358.60 points, or 1.60%, to close at the day’s high of 22,721.9, while Sensex gained 1,109.10 points, or 1.54%, to settle at 73,033.78.
The index exhibit a bearish bias, although it is currently holding above 22,180. Technically, 22,200–22,000 remains a critical support area. A decisive break below this range could accelerate downside momentum and expose the index to levels around 21,700–21,600. On the upside, 22,600–22,800 is likely to act as a key resistance zone following the recent breakdown.
Momentum indicators support this improvement but do not yet confirm a new trend. The RSI has climbed from around 30 to 48, and the MACD has crossed above its signal line with the histogram turning positive. Both point to fading bearish momentum, but both remain in negative territory, typical of early recoveries that can still fail. The moving average structure explains the caution. The index has reclaimed the 21-SMA, but the 50-SMA is slipping below the 100-SMA, and both sit under the 200-SMA. That is still a downtrend, and the bounce has not changed it.
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