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The Nifty ended 196.75 points or 1.51 per cent lower to settle at 12,858.40 after the headline index saw a sharp selloff in the afternoon session forming a 'Bearish Engulfing' pattern. Analysts signalled a creeping paranoia in the market as any further recovery will be vulnerable to selloffs.

The Nifty ended 128.1 points or 1.0 per cent higher in a volatile session owing to monthly and weekly option expiry. The headline index formed a bullish candle with a long lower shadow on the daily chart, suggesting that every small decline is being bought into.

The market rebounded sharply after a day of 1.5 percent correction and closed the November series expiry day with one percent gains on November 26, led by rally in banking and financials, metals, and pharma stocks. The BSE Sensex climbed 431.64 points to 44,259.74, while the Nifty50 jumped 128.60 points to 12,987 and formed bullish candle on the daily charts.

The Indian market that started the day on a muted note recouped losses and closed with gains of 1 percent on the November F&O Expiry day. The S&P BSE Sensex rallied 431 points to close at 44,259 while the Nifty50 ended 128 points higher at 12,987.

After remaining range-bound for the most part of the day, the Nifty gained strength in the last couple of hours to close a percent higher on November 26, the day of November futures & options contracts expiry. It was a smart rebound after a day of 1.5 percent correction, indicating declines were being bought.

Raghvendra Nath of Ladderup feels the sustenance of the market rally would depend on how the global economy recovers from the pandemic, and the current bullishness around the economic recovery may be slightly overstated as the growth drivers are still missing.

Sensex and Nifty recouped all intraday losses to close Thursday’s trading session with gains. The Nifty ended at 12,987 while the 30-stock BSE Sensex 44,259. Among the top gainers on Sensex were Tata Steel, up 5.16%, followed by Bajaj Finance, Bajaj Auto, and HDFC. Only five of the 30 Sensex constituents closed with losses. These included Maruti Suzuki India, ONGC, IndusInd Bank, Tech Mahindra, and Infosys. India VIX or the fear gauge of domestic markets fell 13.42% to close at 20.02.

There could also be an unwinding of positions in the run up to the settlement tomorrow. I will not really read too much into this one- day move, says Nitin Raheja, Co-Founder, AQF Advisors.

I am not discounting the fact that real estate and infra stocks have underperformed for a decade and are bound to catch up, says Atul Suri, CEO, Marathon Trends – PMS.

The market snapped a three-day winning streak and fell sharply amid selling pressure across sectors on November 25, especially after hitting a fresh record high intraday, ahead of the expiry of November futures and options contracts on November 26.

After having hit fresh all-time highs on Wednesday morning, Sensex and Nifty saw a sharp sell-off as stock markets closed deep in red. Sensex and Nifty tanked 1.5% each during the day’s trade. Only three of the 30 Sensex constituents closed with gains. ONGC gained 6.25% while Power Grid and IndusInd Bank were up less than half a percent. Axis Bank and Kotak Mahindra Bank were the top drags. India VIX shot up 9.94% to end above 23 levels. Broader markets mirrored the sharp fall.

Nifty breached the crucial 13,000 barrier and traded above the mark for almost the entire session before ending 128.70 points or 1.0 per cent higher at 13,055.15 on Tuesday, forming a bullish candle, suggesting that bulls tightened their grip on the market. Nifty has gained 12 per cent so far this month.

The market on November 24 staged a strong performance with the benchmark indices registering fresh record highs and Nifty50 closing above 13,000 for the first time, backed by FII inflow and vaccine news.

The market is riding high on the liquidity wave that has not only helped Indian shares recover losses suffered during the coronavirus-led crash in late March but has also lifted the Nifty to a new high of 13,000.

Nifty traded with a 130-point intraday swing on Monday before ending 67.40 points or 0.52 per cent high at 12,926.45 to form a Hanging Man pattern. Hanging Man patter indicates that bulls are losing their tight grip.