Nifty, Sensex Rebound: IT Stocks Lead; Volatility Persists Ahead of Monday

The Indian stock market witnessed a sharp rebound on Thursday, with both Sensex and Nifty recording their second consecutive day of gains. This recovery was primarily driven by strong performance in the IT sector, despite an uptick in the India VIX, indicating continued market volatility.

This rebound signals a potential shift in market sentiment towards positive, at least in the near term, offering opportunities for selective buying. However, the elevated volatility suggests that traders should remain agile and not get complacent, as broader market weakness could still pose risks.

The IT sector is likely to see continued positive momentum, potentially benefiting major players. However, the overall market remains susceptible to volatility, meaning broader indices like Nifty and Sensex could experience swings, requiring careful stock selection beyond just IT.

Traders should monitor the India VIX for signs of easing volatility and observe FII/DII activity for sustained buying interest. Key resistance levels for Nifty and Sensex should be watched, along with any global cues that could influence market direction on Monday.

• •Bulls staged a sharp rebound on Thursday, lifting Sensex and Nifty to a second straight gain.
• •IT stocks led the recovery.
• •India VIX edged higher, indicating high volatility.
• •Analysts see near-term upside but caution that broader weakness and elevated volatility persist.
• •Market sentiment remains positive, supported by strong breadth and selective buying interest.