Can Indian Stock Market Recover Today After Biggest Fall?

Indian Stock Market Recover Today: On April 8, 2025, the Indian stock market indices—Sensex and Nifty 50—are likely to begin the day with gains. This positive outlook comes after a sharp decline on the previous trading day, when both indices recorded their biggest single-day loss in nearly 10 months. The Sensex dropped by 2,226 points to close at 73,137, while the Nifty 50 fell by 742 points to end at 22,161.

Indian Stock Market Recover Today:

Despite Monday’s heavy selling, today’s early signals are looking better. The Gift Nifty, which acts as an indicator for the Nifty 50, was trading at 22,650—nearly 386 points above the previous close. This hints at a possible recovery at the opening bell.

Technical experts point out that Nifty has formed a long bullish candle at a low point of 21,743. This could mean that buyers are showing interest again after the recent weakness. According to analysts, the level of 21,743 might act as strong short-term support, while resistance is expected near 22,400.

However, data from the derivatives market suggests a cautious approach. There has been significant call writing at 22,500, indicating resistance at that level, while strong put writing at 22,000 suggests a support zone. The Put-Call Ratio has dipped slightly, showing rising nervousness among traders.

In terms of market indicators, the India VIX—often referred to as the fear index—jumped by more than 65% to 22.79. This suggests rising volatility and investor caution, a pattern last seen during the COVID-related market fall. Analysts warn that the market could see more pressure if the Nifty falls below the crucial level of 21,530.

Looking at the Bank Nifty, the index dropped over 1,600 points to close below 50,000. However, it managed to defend its 50-day exponential moving average and formed a green candle on the daily chart. Experts say this could be a sign of strength at lower levels, but caution that a fresh rally will only begin if the index breaks above the 50,750 mark.

Some analysts believe that the recent correction—nearly 17% from the 2024 highs—may offer a good buying opportunity for long-term investors. However, for short-term traders, the advice is to remain cautious and use a “sell-on-rise” strategy, especially with expensive option premiums making hedging costly.

Overall, while there is some short-term positivity in the market, the broader outlook remains uncertain due to high volatility and technical weaknesses. Investors are also waiting for cues from the upcoming RBI monetary policy and the Q4 earnings season.