After the decline observed in the previous session on Tuesday, India's stock markets are set to open Wednesday's session on a more positive note as early signals from the global markets are friendly while indications from the Gift Nifty suggest a positive opening. Gift Nifty was trading around 24,720 in the early hours which was about 45 points higher than the Nifty futures close on Tuesday suggesting some relief for the investors.
How Markets Fared on Tuesday
The markets witnessed a sharp decline during the last session due to aggressive profit booking and no fresh positive triggers. The Sensex witnessed a dip of 636 points (0.78%) to settle at 80,737, moreover, the Nifty 50 saw a dip in a 174 points to close at 24,542, marking a 0.70% decline.
Sensex Outlook
Technically, the Sensex has fallen below its 20-day simple moving average (81,300), an indicator that the trend in the near term is weakening. Experts are of the view that unless the index falls decisively below 80,500, a more severe correction is not probable. In that event, the subsequent support levels would be around 80,000 or even 79,800. Alternatively, a crossing above 81,000 may lead to a sudden rebound to 81,300 and possibly 81,500.
Nifty 50 Levels to Monitor
The Nifty is having its own technical issues after it created a bearish candle on the intraday chart. It remains stuck in a consolidation range of 24,500 to 25,000—a level it has not breached for weeks.
Experts indicate that 24,500 is still a key support. If it is breached, the index can try to bounce back towards 24,800. But falling below 24,430 can pave the way for further losses, potentially reaching 24,300 or 24,180.
Although Tuesday's bear candle, many anticipate this to be part of a larger pullback and not the start of a downtrend. With the RSI close to neutral and indicators in oversold areas on shorter timeframes, a rebound is certainly possible.
VLA Ambala of Stock Market Today is of the view that swing traders need to target levels: support can be expected between 24,250–24,180, and resistance around 24,670–24,810. Overall tone is bullish, but intraday tactics need to be adaptable.
Bank Nifty Update
Bank Nifty, after reaching a fresh all-time high at 56,161 on Tuesday, witnessed some profit-taking that pulled the index down marginally. But it was able to hold crucial support levels, which shows underlying strength in the banking sector.
Analysts believe the index is trapped in a consolidation phase between 56,000 and 53,500 for the last few weeks. A clear breakout above 56,000 can propel the rally towards 56,700, and support at 55,000 is a critical buffer.
As per Dhupesh Dhameja of SAMCO Securities, the configuration for Bank Nifty remains bullish if it remains above the 10-day EMA. Small declines are being utilized as opportunity to buy, and with RBI monetary policy announcement imminent, traders can be prepared for volatility and sharp intraday swings.
Conclusion
With divergent technical clues and major indices hovering around critical support levels, markets should continue to be choppy in the short term. Though global cues are supporting a green opening today, traders can expect steep intraday action—given the RBI policy meet on the horizon. The overall trend, nevertheless, remains cautiously positive.
