Nokia Oyj (NOK) shares surged 5.12% in pre-market trading on Thursday, staging a technical rebound after the stock suffered a cumulative decline of over 10% in the prior two sessions. The bounce comes as selling pressure appears to be temporarily easing following the sharp correction.

The recent selloff was triggered by classic profit-taking after Nokia reported better-than-expected Q2 results on July 23. The company posted an adjusted comparable operating profit of EUR 4.34 billion, up 18% year-over-year and significantly above the EUR 3.82 billion consensus estimate. AI and cloud business orders reached EUR 2.8 billion, with sales doubling year-over-year, while full-year operating profit guidance was raised to EUR 2.1-2.6 billion. Despite the strong results, the stock declined from approximately $10.28 post-earnings as investors locked in gains, and multiple managers' transaction disclosures in recent days further exacerbated short-term sentiment pressure.

The current pre-market rebound suggests that the intense selling may be subsiding, with bargain hunters stepping in after the stock dropped from the $9.30 support level to the $8.48 area during the two-day slide.