The Indian stock market is expected to open higher on Wednesday amid ongoing volatility, tracking weak global cues. Gift Nifty trends also suggest a positive start, trading near the 25,304 mark — around 45 points above Nifty futures’ previous close.
Market Recap: Tuesday’s Sharp Drop
The market was in a bad shape on Tuesday as the both benchmark indices went down considerably with Nifty 50 dipping under 25,300. Sensex suffered a big drop of 1,065.71 points (1.28%) to 82,180.47, and Nifty 50 lost 353 points (1.38%) to 25,232.50 at the close.
What Analysts Predict for Wednesday
Sensex Outlook
On the daily charts, the Sensex has made a vivid and robust bearish candle which tells us that the market might see even more weakness. For traders who follow the intraday charts, they are also seeing the downside trend becoming stronger by the formation of lower tops.
Kotak Securities’ Head of Equity Research Shrikant Chouhan mentioned that even though the market looks weak and depressed, it might just be a short pullback of an oversold situation. “The bearish mood continues as long as the Sensex remains under 82,300. Support levels are 82,000–81,700,” he commented.
If the index manages to get above the resistance at 82,300, it could then move towards the levels of 82,500–82,800.
Nifty Derivatives View
Nifty derivatives show heavy call writing at the 25,500 strike and strong put writing at 25,100, establishing this range as a key pivot zone.
Aakash Shah, Technical Research Analyst at Choice Equity Broking, advises traders to stay selective and cautious near support levels. “Fresh positions should be taken only after a decisive breakout above resistance,” he added.
Nifty 50 Technical View
Nifty 50 has created a powerful candle with bearish characteristics and is presently heading to its 200-day moving average of 25,110 which is a long-term support.
Nagaraj Shetti, HDFC Securities Senior Technical Analyst, remarked, “The fall below 25,500 indicates further weakness. Nifty is almost at its important support near 25,150. If it goes below 25,100 the index could be pulled down to 24,800.”
Immediate resistance remains at 25,500.
Centrum Broking’s Nilesh Jain also warns of a bearish trend, stating the MACD indicates a sell crossover on daily and weekly charts. “A pullback may occur, but the bearish setup remains unless Nifty surpasses 25,580. A break below 25,100 could accelerate the fall toward 24,800,” he said. He also highlighted rising market uncertainty, with India VIX jumping 7% to 12.70.
Ponmudi R, CEO of Enrich Money, added that Nifty’s 200-day EMA near 25,163 is a critical support zone. “A breach could trigger stop-loss selling toward 25,000 and below,” he said.
Bank Nifty Outlook
The Bank Nifty index ended at 59,404.20, which represented a drop of 487.15 points (0.81%), bearish candle being formed in the process.
Sudeep Shah, an analyst at SBI Securities, said that the index has gone below its 20-day EMA, which is a sign that the short-term momentum is lost. “Support lies at 59,000–58,900. A break could trigger further downside volatility,” he said.
Resistance is expected near 59,900–60,000.
LKP Securities analyst Vatsal Bhuva also sounded caution, noting a bearish RSI crossover. “Support is at 59,000 and resistance at 59,800. A bullish view is valid only after a sustained close above 60,000,” he added.
