Bulls Stage a Comeback: Nifty Retakes 22,500 Level, India VIX Plunges 10%
Indian markets staged a strong comeback on Tuesday after three consecutive days of falls, as bulls stormed through Dalal Street. The benchmark indices closed heavily higher as value buying attracted investors, buoyed by positive global and domestic leads.
The Nifty 50 jumped 386 points to close at 22,547.60, a healthy 1.74% increase, while the Sensex rose 1,102 points to 74,240.61, up 1.51%. Banking shares also joined the bandwagon, with Bank Nifty closing at 50,580.35, a gain of 720 points (1.44%).
One of the major impulses for the rally was a string of positive macro developments. The Indian rupee gained value against the US dollar, reflecting foreign investors’ increasing ease. At the same time, Brent crude prices fell around the $64 level, providing a boost to India’s import-oriented economy.
On the global side, while there is still ongoing trade tension between the US and China, US index futures were up, indicating soothing fears. Furthermore, India’s relative strength in the emerging markets and its domestic stable fundamentals seem to be instilling confidence in investors that the country will ride the tariff storm better than its peers.
Broad-Based Rally Across Sectors
Source: NSE
Tuesday’s rally was not confined to isolated pockets — it was wide and deep. All major sectoral indices closed in the green, with Nifty Media taking the lead at +4.63%, followed by PSU Banks (+2.87%), Realty (+2.61%), and Pharma (+2.03%). Other large sectors such as Auto, FMCG, Metals, Energy, and Financials also closed between 1.5% to 2.2%, showing a broad-based recovery across the board.
Top Gainers and losers
Jio Financial Services (+5.22%)
Shriram Finance (+4.42%)
Bharat Electronics Ltd (BEL) (+3.34%)
Cipla (+3.32%)
Eicher Motors (+3.22%)
The lone stock in the red was Power Grid Corp, which fell marginally by 0.09% to close at ₹289.15.
Options Market Signals Strong Bullishness
The derivatives market was a mirror to the optimism in full gear. For April 9 expiry, traders bought call options aggressively — especially at 22,500 CE, 22,600 CE, and 22,700 CE, which gained more than 50% each. The most active strike by Open Interest was 23,000 CE, although its price was unchanged, pointing toward hedging or profit taking at higher levels.
On the other hand, put options saw huge unwinding. Strikes such as 22,500 PE, 22,400 PE, and 22,000 PE all collapsed between 67% to 83%, indicating that traders were eager to close bearish positions after the rally. This indicates a strong short-term bullish sentiment going into Wednesday’s trade.
India VIX Drops Over 10% – Fear Melts Away
One of the strongest indicators today came from the volatility index. India VIX dropped 10.31% to settle at 20.44, showing decreased fear and better market confidence. A decline in VIX tends to favor a stable or bullish sentiment in near-term sessions.
Market Breadth: Bulls Rule : Advance/Decline Ration
The advance-decline ratio presented a solid bullish scenario:
Advancing Stocks: 2,391
Declining Stocks: 499
Unchanged: 67
The leadership of gaining stocks indicates buying was widespread, not restricted to large-cap names. Midcaps and small-caps also experienced keen participation, reflecting increased risk appetite on the part of investors.
Global Market Overview
Global cues were positive.
In Europe, key indices such as the FTSE (+1.61%), CAC (+1.00%), and DAX (+1.00%) were in the green.
Asia showed a bag of mixed luck — Japan’s Nikkei 225 led an impressive rally of 5.68%, and Hong Kong’s Hang Seng rose 1.49%. Other indices in Asia, such as Taiwan, Jakarta, KOSPI, and SET, closed at significant losses and were indicative of regional divergence.
On the other hand, GIFT Nifty rose by 302 points and reflected the substantial rally on home bourses with a positive touch for the succeeding session.
The Road Ahead
Tuesday’s aggressive upsurge may be a possible change in sentiment, provided the positive indications are sustained. Nevertheless, traders need to be wary of going into the earnings season and global drivers. As long as India VIX keeps cooling down and sectoral participation remains diversified, Nifty might try to test higher levels of resistance in the 22,800–23,000 area in the upcoming sessions.
Read Also : Nifty 50 : Markets Attempt Recovery After Heavy Sell-Off; Early Signs of Relief, But Caution Still Key
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