The Indian stock markets rebounded and snapped out of the slump it found themselves in at the start of the day's trading on Monday. The Sensex claimed 0.20 per cent to close at 72,809.67, while the Nifty 50 ended 0.29 per cent higher at 22,120.05 after falling down to a low of 21,821.
Cipla, Asian Paints, Divi's Lab, Adani Ports, and Adani Enterprises were among the top gainers of the day in the Nifty 50, while Tata Motors, BPCL, Shriram Finance, ONGC, and NTPC recorded losses.
Senior Technical Analyst at LKP Securities, Rupak De said, "The Nifty has formed a hammer pattern on the daily chart, indicating a potential bullish reversal following a correction. Additionally, the stock has found support around the previous swing low on the daily timeframe."
"The index's recovery may encounter resistance in the 22,150-22,200 zone, and only a decisive move above 22,200 could trigger a stronger rally in the market. On the lower end, support is situated at 21,950," he added.
On Monday, the Indian benchmark indices rebounded after initially picking up losses with most sectoral indices trading in the green except the Auto, PSU Bank, Oil and Gas, Consumer Durables, and Media sectors. Pharma, Healthcare, and Metal indices were among the notable gainers of the day.
Meanwhile, Profit Idea MD Varun Aggarwal said, "Globally, stocks approached record highs as investors awaited key data releases, including U.S. inflation figures and Chinese activity data. Chinese authorities announced plans to sell 1 trillion yuan in longer-dated bonds to support domestic stimulus efforts."
29 out of the 50 stocks on the Nifty 50 index closed in the green, while 21 shares closed in the red. A total of 2,740 shares were traded on the NSE on Monday out of which 1,134 closed with profits, 1,500 with losses and 106 remained unchanged.
Even as stock markets around the world hit all-time highs, the ongoing robustness of the U.S. economy remains a driving force behind the strength of the dollar. The Bank of Japan's indication of a more aggressive monetary policy stance caused Japanese government bond yields to climb, affecting currency markets.