Weak global cues and FII selloffs are pushing the Indian stock market indices into a downward spiral. Nifty's Wednesday's session was again marked with volatility, with analysts expecting the downtrend to extend further.
"The index formed a high-wave candle while posting a lower high and a lower low, reinforcing the extension of the ongoing downtrend and confirming the continuation of the corrective bias," stated analysts at Bajaj Broking Research.
According to Shrikant Chouhan, head of equity research at Kotak Securities, the key support levels for the index are between 25,000 and 24,950. On the upside, the Nifty will find key resistance between 25,300 and 25,425.
Nifty Bank
Selling pressure at higher levels and corrective decline for the index is likely to continue for the Nifty Bank. However, analysts at Bajaj Broking Research note a buying interest at lower levels considering that Nifty Bank did not close near the lows even after dipping to 58,278.6 intra-day.
The 58,700–59,000 zone remains a key short-term support, while on the upside, immediate resistance is at 59,500.
Market Recap
The Indian stock market ended the day in red on Wednesday as well, owing to global uncertainties. Volatility sustained with the Nifty declining 75 points or 0.30% lower to settle at 25,157.50. The Sensex declined 270.84 points or 0.33% to close at 81,909.63. Sectorally, most indices ended in the red, with Consumer Durables, Chemicals, and Private Banks leading the decline.
Nifty Metal and Oil & Gas were the only sectors that offered some support. Broader markets also remained weak, with the Nifty Midcap index falling 1.14% and the Nifty Smallcap index declining 0.90%, reflecting broad-based selling pressure.
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