Sensex rebounds 800 points, Nifty reclaims 23,800 on strong global cues

The Sensex and Nifty staged a solid recovery on December 23, putting an end to a five-day losing streak. Buoyed by robust gains in banking, metal, and realty stocks, the Sensex surged 750 points to close at 78,483.64, while the Nifty climbed 217 points to surpass the 23,800 mark. The rally followed a turbulent week where indices experienced their sharpest fall since June 2022, entering a technical correction. Dr. V K Vijayakumar, Chief Investment Strategist, highlighted, "A sustained rally is possible only when we have indications of a growth revival in the economy, likely in early 2025."

All sectors trade in the green
Investors witnessed a broad-based recovery as all major sectors ended in positive territory. The Nifty Bank, Metal, and Realty indices emerged as top performers, with gains of 0.8 per cent, 1.2 per cent, and 1.1 per cent, respectively. Banking heavyweights like HDFC Bank, ICICI Bank, SBI, and Axis Bank drove gains in the financial sector, while leading metal stocks such as JSW Steel, Tata Steel, and Hindalco strengthened the metal index.

IT and FMCG join the rally
The Nifty IT index also gained close to one per cent, supported by strong performances from TCS, Infosys, and HCL Tech. Meanwhile, the FMCG sector rebounded nearly one per cent after months of underperformance, with key players like Hindustan Unilever, ITC, and Nestle leading the charge.

Mid and small caps participate
Mid and small-cap indices mirrored the optimistic sentiment in the broader market, posting gains of 0.58 per cent and 0.62 per cent, respectively. These segments showed resilience, attracting investor interest amid the overall bullish momentum.

Top movers and laggards
Among individual stocks, Shriram Finance, JSW Steel, Hindalco, Bajaj Finance, and Tata Steel were the top gainers, delivering robust returns to investors. Conversely, laggards included SBI Life Insurance, Apollo Hospitals, NTPC, Cipla, and Hero MotoCorp.

Key levels to watch
Market analysts predict immediate support for the Nifty at 23,600, with resistance likely around 24,000 and 24,200. Bank Nifty is expected to find support at 50,500, while resistance levels are pegged at 51,200 and 51,800.

The day’s rebound signals renewed optimism, providing much-needed relief for investors after a challenging week.

Anand James, Chief Market Strategist, Geojit Financial Services, noted that Nifty might attempt a pullback above the 200-day SMA at 23,835. "If relief rallies gain strength, expect 24,165, but not much beyond. Alternatively, inability to float above 23,700 after early upside attempts could be seen as a weak signal, but we see low prospects of yet another panic down move. The 21 Nov low 23,265 is likely to stay intact for the week."