Indian stock market indices staged a strong recovery on Thursday, with both the Nifty 50 and BSE Sensex rebounding after three consecutive sessions of losses. The recovery was driven by positive global market sentiment following US President Donald Trump's conciliatory tone on Greenland.

Market Performance Overview

The Nifty 50 demonstrated resilience as bulls successfully defended key technical levels, with the index closing above the psychologically important 25,200 mark. The following table summarizes Thursday's market performance:

Intraday Trading Dynamics

The Nifty 50 showed strong intraday momentum, with bulls staging a notable comeback during the trading session. The index appreciated significantly from its opening levels, gaining 278.25 points or 1.10% to reach a session high of 25,435.75. This intraday performance highlighted the market's ability to recover from recent weakness and demonstrated strong buying interest at lower levels.

Technical Analysis Insights

The market's performance on Thursday revealed important technical patterns. The Nifty's ability to close above 25,200 suggests that bulls successfully defended the 200-day moving average, a crucial long-term technical indicator. The formation of a high-wave candlestick pattern on the chart indicates potential indecision in the market, with both buyers and sellers actively participating.

Global Market Influence

The recovery in Indian markets was largely attributed to positive global market sentiment. International markets gained momentum after Trump adopted a more conciliatory tone regarding Greenland, which helped ease geopolitical concerns and supported risk appetite among investors. This external factor played a significant role in driving the domestic market's rebound after the recent three-session losing streak.

Indian equity markets are displaying signs of recovery with renewed buying interest, though traders should prepare for continued volatility in the coming sessions. Market expert Rahul Sharma, Director & Head of Technical & Derivatives Research at JM Financial Services, indicates that Nifty 50 has established crucial support levels following recent market corrections.

Market Support and Technical Outlook

The benchmark index has found near-term support in the 25,900-25,950 zone after experiencing sharp selling pressure. Despite a strong opening in recent sessions, the broader market structure remains bearish, leading many retail investors to utilize rallies as exit opportunities. However, institutional activity presents a more encouraging picture.

Institutional Activity and Market Dynamics

Foreign institutional investor behavior has been notably restrained during the correction phase. FII cash selling has not been aggressive despite the sharp market decline, while their positioning in Nifty futures remains bullish. This positioning indicates favorable risk-reward opportunities for long positions near the 25,000 level.

The current volatility environment should be viewed as a buying opportunity, with Nifty having potential to move toward 25,500 and possibly 25,800 once momentum improves. However, the coming sessions are expected to remain choppy due to multiple market triggers.

Near-term Market Challenges

Several factors are likely to contribute to continued market volatility:

• Monthly derivatives expiry
• Ongoing earnings season developments
• Upcoming Union Budget expectations
• Broader index movements including Nifty Bank

These elements will remain closely linked to overall market sentiment and institutional flows, with sharp swings expected in both major indices over the next few trading sessions.

Sectoral Opportunities and Stock Recommendations

Defence sector emerges as a key investment theme, driven by expectations of higher government spending in the upcoming Budget. Bharat Electronics Limited stands out among defence stocks from a technical analysis perspective.

PSU banking sector also presents attractive opportunities, with specific recommendations including State Bank of India, Canara Bank, and Bank of Baroda. For broader sector exposure, the PSU Bank BeES ETF offers diversified access to the segment.

Trading and Investment Strategy

Both defence and PSU banking stocks have already witnessed selective buying during recent market volatility and are positioned to outperform if Nifty stages a meaningful rebound. For traders focusing on the next 10-15 sessions, both sectors appear attractive from a risk-reward perspective. From an investment standpoint, BEL presents a compelling buy-side opportunity with strong technical setup and sector tailwinds supporting the outlook.