Indian equity benchmarks ended lower on Wednesday as investors booked profits at higher levels, keeping the market's recovery attempt under pressure. The Nifty 50 fell 99 points, while the Sensex declined 252 points, with investors weighing technical resistance levels against mixed global and domestic cues.
Sudeep Shah, head of technical and derivatives research at SBI Securities, said the 22,500–22,480 zone could act as immediate support. A decisive break below this area could revive downside momentum towards 22,330. On the upside, Shah identified 22,770–22,800 as the immediate hurdle. A sustained move above this range could extend the pullback rally towards 22,950. Until a decisive breakout emerges, the index is likely to remain range-bound, with the broader market structure still cautious.
The Nifty's ability to defend the 22,500 mark will be crucial in the next session, as repeated tests of nearby support levels could increase the risk of a breakdown.
Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said the index has repeatedly tested the 22,580–22,620 zone. While the area continues to attract buying, repeated tests could gradually weaken the support unless the index quickly reclaims 22,750–22,800. The market is therefore approaching a crucial technical phase, with traders likely to watch for signs of either renewed buying or a fresh bout of selling.
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Mixed domestic and global cues are likely to keep sentiment subdued, according to Siddhartha Khemka, head of research, wealth management, at Motilal Oswal Financial Services. Elevated crude oil prices and persistent geopolitical tensions continue to weigh on global sentiment. At the same time, the ongoing second-quarter earnings season for FY27 and optimism around a potential review of capital gains tax and securities transaction tax could provide some support to domestic markets.
Bank Nifty Outlook
Bank Nifty also ended lower as profit booking emerged near the 55,500–55,600 zone, which has repeatedly capped gains and remains a key near-term resistance. However, the index managed to hold above the psychologically important 55,000 mark, offering some near-term stability.
Ponmudi R, CEO of Enrich Money, said a sustained breakout above 55,600 could strengthen recovery momentum and open the way for further gains. However, continued rejection at this resistance zone could keep the index range-bound.
On the downside, 55,000 remains the immediate support, followed by the 54,600–54,400 zone.
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