Sensex Rebounds 500 Points Amid Market Volatility on September 29

On September 29, the Indian stock market showed significant recovery, with the Sensex rising 500 points from its day's low and the Nifty surpassing the 22,700 mark. This rebound was attributed to various factors, including value buying as investors sought opportunities in an oversold market.

Earlier in the day, the Sensex was down by 198.04 points, or 0.27%, settling at 72,573.68, while the Nifty fell by 55.35 points, or 0.24%, to 22,724.90. Market breadth indicated that 1,617 shares advanced, 2,128 shares declined, and 164 remained unchanged, reflecting a mixed sentiment among investors.

Analysts pointed out that value buying emerged as a key driver for the recovery, especially as the markets were perceived to be oversold. The rise in U.S. 10-year treasury yields and high crude oil prices had previously weighed on market sentiment, leading to widespread selling in Indian equities. Despite the overall negative market structure, the daily momentum indicators suggested that a brief pullback could be on the horizon.

Another contributing factor to the market's recovery was the easing of the India VIX, which dropped from 14.77 to 14.04, indicating reduced volatility and nervousness among investors. Technical analysts noted that the Nifty needed to maintain levels above 22,600 to prevent further weakness, while a sustained move above 22,800 could signal a more robust recovery.

Looking ahead, market participants are advised to watch key levels closely. Immediate support is identified at 22,650–22,700, while resistance is expected around 23,000. Analysts remain cautious, suggesting that unless the Nifty reclaims 23,150, the broader trend may still be weak. Any significant drop below 22,600 could lead to further declines towards the 21,800 region, keeping investors on alert for potential market shifts.