Sat Nov 30 06:27:45 UTC 2024: ## Indian Markets Rebound After F&O Selloff; Volatility Remains

**Mumbai, India** – Indian benchmark indices, the Sensex and Nifty, staged a strong recovery today, rebounding from yesterday’s sharp selloff triggered by derivatives expiry. The Sensex surged 712.17 points (0.90%) to close at 79,755.91, while the Nifty gained 217.85 points (0.91%) to reach 24,132. This upward swing was driven primarily by gains in Reliance Industries, Bharti Airtel, Larsen & Toubro, and ICICI Bank, as investors deemed the previous day’s decline unjustified.

Despite a downturn in most Asian markets, positive sentiment in China, fueled by hopes of less stringent US export restrictions, contributed to the domestic market’s gains. The India VIX, a volatility index, also eased, indicating reduced market anxiety. This recovery comes on the heels of a massive Rs 11,756.25 crore selloff by Foreign Portfolio Investors (FPIs) in the previous session.

Market analysts remain cautious, however. Nuvama Institutional Equities predicts Nifty to oscillate between 23,450 and 25,000, reflecting ongoing volatility. Angel One’s Sameet Chavan warned that failure to maintain upward momentum could signal a resumption of the downtrend. Key resistance levels are anticipated around 24,050-24,150, with a sustained move above 24,400 required to solidify bullish sentiment. The banking sector’s performance is deemed critical for continued recovery.

While mid-cap stocks showed resilience, investors are advised to proceed with caution. Geojit Financial Services’ V K Vijayakumar suggests that a “buy on dips” strategy may not yield immediate returns and recommends a medium-to-long-term approach, focusing on large-cap stocks in financials, IT, capital goods, and telecom.

The National Stock Exchange (NSE) added 45 stocks to its Futures and Options (F&O) segment today, including prominent names like Indian Bank, Union Bank, LIC, and Zomato. This is expected to increase stock-specific activity, according to Mehta Equities.

The unpredictable behavior of FPIs, characterized by recent days of buying followed by significant selling, remains a source of concern. Experts advise investors to adopt a wait-and-watch approach given the ongoing uncertainty.

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