The escalating Iran war kept Indian equity benchmarks under pressure on Wednesday, with the Nifty 50 clocking a sharp decline at close. Analysts expect the weakness to persist amid uncertain global cues.
"The index formed a sizable bearish candle with a lower high and a lower low signaling lack of follow through to previous sessions pullback with the index testing the key support area of 24,000-23,700," said Bajaj Broking Research.
On the upside, key resistance lies at 24,150 level, as per Shrikant Chouhan, head of equity research at Kotak Securities.
"Overall, unless the index reclaims 24,300, any pullback is likely to be viewed as a sell-on-rise opportunity, particularly amid ongoing geopolitical uncertainty," advised Dhupesh Dhameja, derivatives research analyst, SAMCO Securities.
Bank Nifty
The Bank Nifty Index is expected to trade with a downward bias, analysts at Bajaj Broking Research pointed out. The index will most likely mirror Nifty's weakness in the coming days due to the Middle East crisis.
"Index formed a sizable bearish candle with a lower high and a lower low signaling lack of follow through to previous sessions pullback with the index falling below the 56,000 levels. Volatility is likely to remain elevated amid uncertain global cues, rising crude price and escalating geo-political tension," the research firm noted.
Key support for the index lies at 55,800, as per Dhameja from SAMCO Securities. "A decisive breach below this level could accelerate downside momentum toward 55,200," he highlighted.
Market Recap
Indian equity benchmarks resumed their decline on Wednesday after a brief recovery in the previous session, as rising crude oil prices and weak global cues weighed on sentiment. The NSE Nifty 50 dropped 1.6% to settle below the 23,900 mark, while the BSE Sensex fell more than 1,300 points to close marginally above 76,863.
The decline in benchmark indices erased nearly Rs 3.2 lakh crore in market capitalisation among companies in the Nifty 50 index during the session.
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