After weeks of persistent selling, the S&P BSE 500 Index shows signs of stability, with BSE Ltd rebounding nearly 5% in intra-day trading on Tuesday. This comes after the stock shed almost 27% over six sessions due to legal uncertainties and regulatory concerns. While the broader index remains under pressure, this recovery signals a potential shift in sentiment, provided key resistance levels are reclaimed.
BSE 500 index rebounded nearly 5% in intra-day trading on Tuesday, ending a six-session losing streak. Over the past six trading sessions, the stock had plummeted almost 27%, weighed down by regulatory concerns and legal uncertainties.
The steep decline followed a Mumbai court’s directive to file a First Information Report (FIR) against former SEBI chairperson Madhabi Puri Buch, two BSE officials, and others over alleged irregularities in granting listing permissions in 1994. Additionally, investor sentiment remained weak amid concerns over SEBI’s proposed regulatory changes, which have fueled market volatility in recent weeks.
Given the technical indicators and price action, the BSE 500 index remains in a downtrend. The market will require a strong catalyst to break through resistance levels and reverse the bearish momentum. Traders should closely watch the 31,071.09 support level—if breached, further downside toward 30,500.00 is likely. On the upside, a move above 32,126.66 may provide temporary relief. Until a clear trend shift is confirmed, caution is advised when making long-term bullish bets.