Nifty Recovers From Support After Sharp Sell-Off

After showing a sharp weakness on Friday, Nifty tanked again on Monday amidst rising geo-political tensions and Nifty closed the day lower by 312 points amidst recovery from the lows. After opening on a deep cut of around 500 points, the market showed volatility for better part of the session. Meaningful recovery has emerged from near the support of 24600 after 2pm and the market finally closed off the lows. The opening down gap has been filled partially.

A long green candle was formed on the daily chart with sharp gap down opening. The market has bounced back from near the lows of Union Budget 2026 day-1st Feb. Technically, this market action indicates sharp down trend in the market with reasonable buying  emerging from the crucial supports.

The underlying trend of Nifty is down. Further bounce from here could find strong hurdle around 25100 levels in the near term. However, any weakness below 24600 could open further declines down to the next support of 24300 levels.