The NSE Nifty 50 Index finds support in the 23,200-23,000 levels, according to Dhupesh Dhameja, derivatives research analyst at Samco Securities. The index is expected to see further downsides, with the Nifty index logging its worst losing streak since January, owing to weakness in global markets, amid uncertainty and escalation regarding the US and Iran.
US markets also indicated a similar outlook, opening in the red, due to the country's high inflation readings for the month of April weighed on investor sentiment.
The GIFT Nifty saw a 0.50% downturn to trade at 23,306, echoing the bearish sentiment of the other indices. "Overall, the index has entered a volatile corrective phase," Dhameja said.
The analyst recommended a sell-on-rise strategy. "A decisive follow-through below 23,320 could accelerate downside momentum towards 23,000–22,900, while stability above 23,800 is essential to revive short-term recovery momentum and ease the prevailing selling pressure," he added.
The index finds resistance at 23,530–23,550 levels, according to Sudeep Shah, head of technical and derivatives research at SBI Securities. "As long as Nifty sustains below the 23,550 mark, the prevailing bearish trend is likely to persist, potentially dragging the index lower towards 23,200, with the possibility of further downside extending to the 23,050 level," the analyst stated.
ALSO READ: US Stock Market Today: S&P, Nasdaq In Red After High Inflation Print; Tech Stocks Lead Decline
Bank Nifty
The Bank Nifty Index finds support at 52,720 levels, according to Dhameja. "The index is currently trading within the unfilled gap zone near 53,700–52,720, where the lower boundary of the gap at 52,720 now becomes a crucial support for the ongoing corrective phase," the analyst said.
According to Shah, the 54,100–54,200 zone is likely to act as a significant resistance for the index. "As long as Bank Nifty remains below the 54,200 level, the prevailing downtrend is expected to continue, with the index likely to drift towards 53,000 in the near term, followed by a potential decline towards the 52,500 level," Shah stated.
Dhameja recommended a "sell-on-rise" strategy if the index stays belore 54,300-54,500. "As long as the index remains below 54,300–54,500, the sell-on-rise strategy is likely to remain favourable, while a decisive follow-through below 53,450 could intensify downside pressure towards the 52,700 zone," Dhameja said.
Market Recap
Indian benchmark indices closed sharply lower on Tuesday, extending their longest losing streak since the second week of January, as weakness in global markets triggered broad-based selling across sectors.
The NSE Nifty 50 fell 1.83% to close at 23,579.55, while the BSE Sensex declined 1.92% to 74,559.24. The decline marked the steepest single-day fall for the benchmarks since March 30.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.