Renewed global trade uncertainties, US President Donald Trump's Greenland push and a mixed bag of earnings dragged the Indian stock market indices to their lowest in three months. Analysts expect volatility to persist till clarity emerges on the US–Europe tariff standoff over Greenland.
"The index formed a sizable bearish candle, registering a lower high and a lower low, which underscores an extension of the ongoing decline and confirms the continuation of the corrective bias," said Bajaj Broking Research.
The key support for Nifty lies at 25,000 level, while on the upside, immediate resistance can be found at around 25,500 levels, it added.
"We are of the view that, although the intraday market texture is weak, it is oversold; hence, one quick pullback rally from the lower levels cannot be ruled out. For traders, as long as the market is trading below 25,300, a weak sentiment is likely to continue," said Shrikant Chouhan, Head Equity Research at Kotak Securities.
Nifty Bank
The ongoing corrective decline is anticipated to persist for the Nifty Bank index, with the 58,700–59,000 zone emerging as an important short-term support area, as per analysts at Bajaj Broking.
On the upside, the recent all-time high zone of 60,200–60,400 continues to act as a major resistance.
"This prolonged sideways movement highlights a phase of indecision, and a decisive breakout above or breakdown below this range will be crucial in determining the next directional trend for the index," the research firm added.
Market Recap
The Indian stock market ended the day in red on Tuesday, with the Nifty closing 353 points or 1.38% lower at 25,232.50 and Sensex settling 1,065.78 points or 1.28% lower at 82,180.47.
Sector-wise, Realty led the fall with a 5% drop, while Auto, IT, Media, Metal, PSU Bank, Pharma, Oil & Gas, and Consumer Durables declined 1.5–2.5%. Mid-cap and small-cap indices declined more than 2.5% each.
Also Read: From Rupee Weakening To FII Outflows: Five Reasons Why Markets
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