- Indian equities fell again Tuesday, with Sensex down 243 points and Nifty 50 down 64 points
- Nifty's 22,600 level is a crucial support; a break may push it towards 22,500–22,400
- India VIX eased to 13.35, indicating reduced near-term market panic, per experts
Indian equities extended their losing streak on Tuesday, with benchmark indices ending lower amid continued selling pressure. The Sensex declined 243 points, or 0.3%, to close at 72,529, while the Nifty 50 fell 64 points, or 0.3%, to end at 22,716. Market participants are likely to keep a close watch on the 22,600 level on the Nifty in Wednesday's session, with technical analysts pointing to this zone as a crucial near-term support.
“Market's short-term trend remains weak, although a quick intraday pullback rally cannot be ruled out. For day traders, 22,600 is a key support zone. Above this level, the pullback could continue towards 22,850–23,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
However, a decisive break below 22,600 could intensify selling pressure. Chouhan expects the index to potentially slip towards 22,500–22,400 if the support gives way.
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Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, noted that some indicators suggest near-term panic has moderated. “The India VIX eased to 13.35, while the PCR improved to 0.86, suggesting that near-term panic has moderated,” he said.
However, Radhakrishnan added that the broader structure remains biased towards selling on rallies until the Nifty reclaims 23,500. A sustained recovery in financial stocks, along with improving global market conditions, would be important for a stronger recovery, he said.
Bank Nifty Outlook
Bank Nifty also remained under pressure on Tuesday, closing 0.39% lower. However, the index formed a thin-bodied hammer candle with a larger lower wick, indicating buying interest at lower levels. “Bank Nifty formed a thin bodied hammer candle with a larger lower wick, indicating buying traction at lower levels,” said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
Despite the formation, the index continues to trade below key exponential moving averages (EMAs), keeping the broader technical structure weak. The Relative Strength Index (RSI) remains below 30, while the Moving Average Convergence Divergence (MACD) continues to slope downward, indicating persistent bearish momentum.
For Wednesday's session, the 53,800–53,700 zone is likely to remain an important support area. A break below this zone could trigger further selling towards 53,200. On the upside, 54,700–54,800 is the immediate hurdle for Bank Nifty. A sustained move above this range could extend the pullback towards 55,300, Shah said.
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