The Indian market is expected to open on a weak note on Wednesday, weighed down by weak global sentiment. Early trends on the Gift Nifty signal a negative start, with the index quoting near 25,177, almost 79 points below the Nifty futures’ previous close.
On Tuesday, the benchmark indices continued their losing streak for a third straight session, though the decline remained modest. The Sensex slipped 57.87 points, or 0.07%, to close at 82,102.10, while the Nifty 50 shed 32.85 points, or 0.13%, to end the day at 25,169.50.
Sensex bounced off the 81,800 zone, trying to recover, but struggled to sustain momentum at higher zones. Analysts say the index remains in a volatile, non-directional phase.
A break above 82,350 may reignite bullish sentiment and bring 82,600-82,800 back into play. If the index falls below the 81,800 level, selling pressure could take it down towards the 81,500-81,400 region.
Nifty 50 closed below the 25,200 levels on Tuesday and formed a high-wave candle pattern on the daily chart, which indicates increased volatility and indecision.
Experts have pointed out the 25,000 levels as critical psychological support, with immediate support seen in the 25,080-25,050 range. On the upside, hurdles are expected at 25,270-25,300. Sustained activity above 25,300 can trigger an upward move toward 25,450.
Market experts believe the ongoing correction may be nearing exhaustion, with scope for a short-term bounce. Momentum indicators, however, are showing sideways action, implying that consolidation may continue before a clear trend emerges.
On Tuesday, Bank Nifty was stronger than the previous session, gaining 225 points, or 0.41%, to close at 55,509.75. Bank Nifty has also broken its 50-day SMA of 55,440 and is trading above the 9-EMA, indicating strength.
The first immediate support is at 55,200, but stronger support is at 54,700-54,900 levels near the 20-day EMA and previous swing lows. The index faces resistance at 55,850; a breakout above this level could trigger acceleration toward 56,000-56,200 in the near term.
Technical indicators reinforce a positive undertone. RSI has improved to 57, while MACD remains firmly in the green. Analysts see consolidation between 54,700-56,000; a decisive move past 56,000 would open the road toward 57,000 in the coming weeks.
Overall, the market outlook remains cautious, as global factors continue to dampen sentiment. Nifty is likely to stay in a range of 25,000 and 25,300, while Sensex trades within its key support and resistance levels.
Bank Nifty continues to show relative strength, with analysts recommending a buy-on-dips strategy in the current consolidation.
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