The benchmark indices ended higher on the day, with the Sensex rising 231.99 points, or 0.31 per cent, to settle at 75,415.35, while the Nifty gained 64.6 points, or 0.27 per cent, to close at 23,719.30. Market breadth remained positive as 2,026 shares advanced, 1,827 declined, and 136 remained unchanged. During the session, both the Sensex and Nifty climbed nearly 0.75 per cent during trade before profit-taking and technical resistance capped the upside momentum.
During the session, the Sensex touched an intraday peak of 75,810.97, while the Nifty hit 23,835.65 before retreating from higher levels.
Profit Booking Erodes Morning Gains
One of the primary reasons behind the market surrendering gains was profit booking after the sharp morning rally. Investors appeared cautious near higher levels, leading to selling pressure across several sectors.
The Sensex reportedly slipped nearly 350 points from the day’s high, while the Nifty dropped below the crucial 23,750 mark during afternoon trade. Traders chose to lock in profits after recent gains, which limited the market’s ability to sustain momentum.
India VIX Signals Rising Volatility
Another factor weighing on sentiment was the rise in market volatility. India VIX, commonly referred to as the fear index, traded around 1% higher at 18 during the session.
An uptick in volatility generally reflects growing uncertainty among investors. Rising VIX levels often lead to cautious trading behaviour, especially when benchmark indices approach major resistance zones.
Analysts also highlighted technical resistance as a key hurdle for the market. According to market experts, the Nifty must decisively move above the 23,800 level to revive bullish sentiment on a sustained basis.
“On the downside, 23,500-23,400/75000-74500 remain important support zones, while 23,800-23,850/75800-76000 could act as key resistance areas for bulls. On the bright side, a breakout above 23,850/76000 could take the market higher towards 23,950-24,000/76300-76500, while below 23,400/74500, it could retest the 23,250-23,200/74000-73800 levels,” said Kotak Securities.