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After opening sharply lower, the NSE Nifty rebounds from the day’s low of 23,397 to trade near 23,606 by 11:30 am, down just 0.05% or around 12 points.
Market breadth remained weak across the board.
Indian equity benchmarks recovered sharply from early losses on May 20, with frontline indices nearly erasing the morning decline by 11:30 am, aided by buying in heavyweight Reliance Industries, auto stocks and select financial names. However, the broader undertone remained cautious amid global concerns around elevated US bond yields, crude oil prices and persistent geopolitical tensions.
After opening sharply lower, the NSE Nifty rebounded from the day’s low of 23,397 to trade near 23,606 by 11:30 am, down just 0.05% or around 12 points. The BSE Sensex also recovered significantly from the opening selloff and was down only 55 points at around 75,140.
As of 9:20 am, the NSE Nifty was trading at around 23,420, down 183 points or 0.84%, while the BSE Sensex slipped 595.82 points to hover near 74,600 at 74,605.24 in the opening trade.
The recovery was largely driven by gains in heavyweight stocks such as Reliance Industries, M&M, Axis Bank, L&T and TCS. Reliance rose nearly 0.9%, while M&M gained over 0.8%, helping the benchmarks rebound from intraday lows. Auto stocks emerged among the strongest sectoral performers, with the NIFTY Auto index climbing 0.88%.
Broader markets also showed resilience after a weak start. Midcap indices turned marginally positive, while smallcaps pared most of their losses. The NIFTY Midcap 100 traded flat with a positive bias, while the NIFTY Smallcap 100 remained down only 0.31%, indicating selective buying at lower levels.
Sectorally, market action remained mixed. Auto, Oil & Gas, Pharma and Healthcare indices traded in the green, signalling defensive and value buying. The NIFTY Oil & Gas index rose 0.59%, while Pharma and Healthcare indices also edged higher.
On the other hand, Media, Chemicals, FMCG and Consumer Durables continued to witness selling pressure. The NIFTY Media index remained the top laggard, falling 1.5%, while Chemicals declined 0.9%. Realty stocks also stayed under pressure, though losses narrowed sharply from the opening session.
Volatility indicators remained elevated despite the recovery. India VIX traded above 18.7, reflecting continued nervousness among traders due to global macro uncertainty and currency concerns.
Technically, the Nifty managed to defend the crucial 23,400 support zone highlighted by analysts earlier in the day. The sharp rebound from intraday lows suggests buying interest at lower levels, though analysts believe sustained upside would require the index to decisively move above the 23,750–23,900 zone.
The market recovery also came despite weak global cues. Concerns over rising US Treasury yields, elevated crude oil prices above $110 per barrel and pressure on the rupee continue to weigh on investor sentiment globally. However, bargain buying in select heavyweight sectors helped domestic equities stabilise after the initial panic selling.
Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited, said, “Indian equity markets are expected to open on a cautious negative note, with the GIFT Nifty trading at 23,431 down by 133 points. Global equities remained muted following weak cues from the US markets, as investors turned cautious amid rising bond yields and persistent geopolitical uncertainties.”
He added that the Nifty remains stuck within the broader 23,300-23,800 consolidation range, while momentum indicators continue to flash bearish signals.
According to Shah, technically, the Nifty formed a small bearish candle with an upper wick on the daily chart, indicating selling pressure at higher levels. He noted that the index continues to trade below the 38.2% Fibonacci retracement level and all key short-term and long-term moving averages, keeping the broader structure weak.
Rajesh Palviya, head of research at Axis Direct, said, “The 23,400-23,300 zone remains a crucial support band for the bulls; a decisive breach could drag the index toward 23,100-23,000.”
He added that unless Nifty decisively reclaims 23,750, upside momentum is likely to remain capped, while only a sustained move above the 23,900–24,000 zone would improve the near-term outlook materially.
Global markets remained a key overhang for domestic equities. Wall Street extended losses for a third straight session overnight, while the US 30-year Treasury yield climbed to multi-decade highs, intensifying concerns over tighter global liquidity conditions. Elevated crude oil prices and a firm US dollar also continued to weigh on emerging market sentiment and currency stability.
The Indian rupee fell by 33 paise in early trade on May 20 to touch a fresh record low of 96.89 against the US dollar, extending its losses for the past several sessions.
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