The NSE Nifty 50 is likely to open lower on Wednesday, after Indian stock indices ended the session in the red on Tuesday. The Nifty 50 ended 112.10 points, or 0.46%, lower at 24,471.70. The Sensex declined 388.19 points, or 0.49%, to close at 78,154.25.
Global cues witnessed mixed signals with the US markets seeing the Dow Jones and S&P 500 indices opening in the green while Nasdaq fell 0.19%.
The GIFT Nifty futures saw a 0.19% uptick to 24,563 levels, at 10:52 p.m. on Tuesday.
According to Dhupesh Dhameja, derivatives research analyst, SAMCO Securities, 24,385–24,350 is the critical support zone. A decisive break below the 200-DEMA (double exponential moving average) could accelerate selling towards 24,250–24,200, as per the analyst.
"Traders should monitor the 200-DEMA closely; holding it could trigger a technical rebound, while a sustained breakdown would confirm further weakness," Dhameja said.
On the upside, the 24,600-24,630 zone is expected to act as an immediate and crucial resistance hurdle, according to Sudeep Shah, head of Technical and Derivatives Research at SBI Securities.
"A sustained move above this band would be required to revive bullish momentum and pave the way for further upside," the analyst stated.
Bank Nifty
Technically, the Bank Nifty index is now testing its 50-DEMA near 57,100, making this the next important support, as per Dhameja.
"A sustained break below the 50-DEMA could accelerate downside momentum towards 56,500, while 57,500–57,700 has turned into the immediate supply zone. A bullish reversal would gain credibility only on a sustained move above 57,700," the analyst said.
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From a technical standpoint, the 100-day EMA (extended moving average) zone of 56,900-56,800 is likely to act as a critical support area in the coming sessions, as per Shah. A decisive breakdown below 56,800 could trigger further weakness, with the index potentially declining towards the 56,200 mark, as per the analyst.
"On the upside, the 57,900-58,000 zone remains a significant resistance. A sustained move above this range would be required to improve sentiment and revive bullish momentum," Shah said.
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