Nifty snaps longest losing streak, can stock market extend gains?

The 50-stock Nifty snapped its longest ever losing streak of ten sessions on Tuesday as investors took into account reports that US President Donald Trump was likely to announce a compromise with Canada and Mexico on the tariff front as early as Wednesday. This could imply a likely rollback of new 25 per cent tariffs on the two trading partners, CNN quoted US Commerce Secretary Howard Lutnick as saying. 

In the current session, Sensex rose 740 pts to 73,730 and Nifty gained 254 pts to 22,337. Stocks such as Adani Ports, Tata Steel, PowerGrid, M&M, NTPC and Tech Mahindra were the top gainers on Sensex, rising up to 5.02%. Of 30 Sensex stocks, 25 ended in the green. Investor wealth climbed by Rs 8 lakh crore to Rs 393.04 lakh crore today compared with a valuation of Rs 385.07 lakh crore recorded in the previous session. 

BSE midcap index rose 1029.77 pts to 39,751. BSE small cap stock index too climbed 1212.32 pts to 44,538 level, indicating recovery in the broader market. 

Amid the market recovery today, Sensex is down 5.64% and Nifty has lost 5.92% in 2025. As many as 52 stocks hit their 52-week highs today. On the other hand, 196 shares fell to their 52-week lows on BSE today.

Prashanth Tapse, Senior VP (Research), Mehta Equities expects volatility in the market in near term. 
"Strong global market cues led the recovery in domestic indices as talks that Trump administration could reverse some tariffs amidst the ongoing global trade tensions buoyed sentiment. Also, local factors such as increase in February PMI index, a sharp fall in rupee, and downtrend in crude oil prices triggered massive buying in the beaten-down technology, realty and telecom shares. However, as the recovery remains fragile due to global uncertainty and FIIs showing no signs of halting the selloff trend, market could remain volatile going ahead," said Tapse.

Out of 4,101 stocks traded, 3247 stocks ended in the green on BSE. Around 768 stocks closed in the red while 86 stocks remained unchanged.

Around 8 stocks hit their lower circuits even as the stock market saw a stellar recovery today. On the other hand, 196 shares hit their upper circuit limits amid bullish sentiment on BSE.

BSE midcap index rose 1029 pts to 39,751, indicating strong sentiment in the broader market. BSE small cap index too climbed 1212 pts to 44,538.

Rupak De, Senior Technical Analyst at LKP Securities said, "Nifty witnessed a solid rebound as the 21,800-22,000 zone provided strong support. The index has moved up after two days of sideways trading. Besides, the RSI is in a bullish crossover and has risen from the oversold zone. In the short term, the trend is likely to remain strong, with the potential to rise towards 22,700 and higher. On the lower end, support is placed at 22,100/22,000."

Ajit Mishra – SVP, Research, Religare Broking advises traders and investors to be cautious. 

"While the rebound is encouraging, traders should avoid reading too much into a single-day bounce and wait for further confirmation. On the benchmark front, Nifty may face resistance around the 22,500-22,700 zone if the recovery continues. Amid this setup, we maintain a stock-specific approach, favoring banking, financials, and metals for long trades while remaining selective in other sectors," said Mishra.