After slipping nearly 400 points to an intraday low of 80,321.19, the Sensex rebounded smartly to close at 80,710.76, while the Nifty reclaimed the 24,700 mark, settling at 24,741
Gaurav Garg,
Lemonn Markets Desk
Mumbai, September 5, 2025: Equity benchmarks staged a strong recovery on Friday, erasing early losses as positive global cues, robust domestic flows, and a rally in auto stocks lifted sentiment. After slipping nearly 400 points to an intraday low of 80,321.19, the Sensex rebounded smartly to close at 80,710.76, while the Nifty reclaimed the 24,700 mark, settling at 24,741.
The rebound was supported by several key factors: upbeat trends across Asian markets, steady DII inflows countering FII selling, a dip in crude oil prices, and a sharp rally in auto stocks following GST rate cuts. Mahindra & Mahindra and Ashok Leyland were among the standout gainers in the auto pack. Additionally, a decline in India VIX signaled easing investor concerns, providing further stability to the market.
Overall, the combination of global strength, policy-driven sectoral tailwinds, and reduced volatility helped markets recover swiftly from intraday lows, underscoring the underlying resilience of domestic equities.
According to Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd.,
“The domestic benchmark index Nifty opened on a positive note, witnessed see-saw trading session, and finally settled on a flat note at 24,741. Technically, on the daily chart, Nifty formed a red candle with long lower shadow, indicating buying interest at lower levels. In the near term, trend line resistance is placed around 25,000 levels, which will act as a strong hurdle, while major support is seen near 24,460 (150-DEMA) and 24,340 levels. We expect Nifty to consolidate in the band of 24,340-25,000 in the short term. Thus, short term traders are advised to buy near support and sell near resistance in short term.
The Bank Nifty index opened positive note, witness selling pressure, but late recovery help the index to settle on a flat note at 54,115. Technically, the Bank Nifty index on a daily scale formed a red candle with long lower shadow indicating buying interest at lower levels. On the downside, 200-DEMA as well as the low of the bullish engulfing candle placed near 53,560. As long as the Bank Nifty sustains above this level, a buy-on-dips strategy is recommended. On the higher side, 54,450 will act as short term hurdle for the Bank Nifty, followed by 54,900.”
