Sensex, Nifty Rebound on Trade Talk Hopes, But Market Caution Remains

• Indian benchmark indices Sensex and Nifty saw a sharp recovery on Monday, driven by positive comments from US Ambassador to India Sergio Gor regarding ongoing trade talks.
• The rebound was largely attributed to short-covering in heavyweight stocks after five consecutive sessions of decline.
• Despite the recovery, Nifty faced resistance above the 25,750 mark, and the advance-decline ratio indicated sellers still outnumbered buyers across various indices.
• Analysts suggest the recovery might be a short-term pullback due to oversold conditions, with sustained move above 25,600 needed for a meaningful trend reversal.
• Hopes of improving India-US ties, including a potential visit by President Donald Trump, also contributed to the positive sentiment.

Why It Matters: Markets recovered on trade talk optimism, but underlying data suggests caution and potential for further correction.