Tue Oct 08 12:12:01 UTC 2024: ## Indian Markets Rebound After Six-Day Slump, Nifty Closes Above 25,000

**Mumbai, October 8:** Indian benchmark indices snapped a six-day losing streak on Tuesday, ending higher with the Nifty closing above 25,000. The Sensex gained 584.81 points, or 0.72%, to settle at 81,634.81, while the Nifty rose 217.40 points, or 0.88%, to close at 25,013.20.

The rebound was driven by short covering in banking, telecom, auto, and realty stocks. This recovery occurred despite weak cues from Asian and European markets, but the short to medium term domestic market outlook remains uncertain due to FPI sell-offs and the ongoing conflict in West Asia.

**Key Highlights:**

* The Nifty formed a bullish harami pattern, indicating rising optimism.
* The index moved above a critical moving average on the hourly timeframe.
* The RSI made a bullish crossover in the shorter timeframe.
* Most sectors contributed to the rise, with auto, energy, and pharma leading the gains.
* The BSE midcap index added nearly 2%, and the smallcap index rose 2.5%.
* All eyes are on the RBI’s credit policy outcome on Wednesday, with expectations for a status quo on interest rates.

**Top Gainers:**

* Trent
* Adani Enterprises
* Adani Ports
* Bharat Electronics
* M&M

**Top Losers:**

* Tata Steel
* SBI Life Insurance
* Titan Company
* JSW Steel
* Bajaj Finserv

**Market Outlook:**

* While the recovery in key heavyweights could drive the Nifty further upward, sustaining this momentum may be challenging.
* Nifty faces an immediate resistance zone around 25,150-25,300, with a significant hurdle still at 25,500.
* Traders should use this recovery to lighten positions and remain selective for long trades.
* IT and pharma stocks are recommended for their resilience, while careful stock selection is advised in other sectors.

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