Indian stock markets closed lower on Wednesday as a sharp selloff in technology stocks dragged benchmark indices into the red. The weakness came after several brokerages downgraded global software companies, triggering pressure across the IT sector.
The cautious sentiment appears set to continue on Thursday. At around 10:13 pm, GIFT Nifty was trading 0.8 per cent lower at 23,312.50, indicating a gap-down opening for domestic equities.
Despite the decline, technical analysts noted encouraging signs of buying at lower levels, which helped benchmark indices recover from their intraday lows.
Nifty Shows Buying Interest Near Key Support Zone
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the Nifty formed a narrow-bodied candle with a prominent lower wick on the daily chart, a pattern often associated with buying support emerging at lower levels.
He noted that the index approached the crucial 61.8 per cent Fibonacci retracement zone between 23,120 and 23,115, measured from the previous rally between 22,183 and 24,602. Strong demand emerged in this area, helping the index stage a sharp rebound during the trading session.
The price action suggests that market participants continue to accumulate stocks near important support levels despite broader weakness.
Crude Oil Prices Remain A Key Concern
Global crude oil prices continued their upward momentum throughout the day, adding another layer of uncertainty for investors.
Brent crude, the international benchmark, was trading 1.8 per cent higher at $97.66 per barrel, while West Texas Intermediate (WTI) crude gained more than 2 per cent to trade at $95.75 per barrel.
Rising oil prices remain a concern for emerging markets like India as they can increase inflationary pressures, impact corporate margins and influence monetary policy decisions.
Investors Tracking RBI Policy, US-Iran Talks And Rupee Movement
Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, said investors are closely monitoring several factors that could determine the market’s near-term direction.
Among the key triggers are:
- Crude oil price movements
- Developments in ongoing US-Iran negotiations
- Foreign Institutional Investor (FII) activity
- Rupee movement against the US dollar
- Outcome of the Reserve Bank of India’s Monetary Policy Committee meeting
These factors are expected to play a crucial role in shaping market sentiment over the coming sessions.
Key Nifty Levels To Watch
From a technical perspective, analysts believe Nifty remains at an important juncture.
Immediate Support:
- 23,270 – 23,250 zone
Immediate Resistance:
- 23,530 – 23,550 zone
A sustained move above resistance could improve sentiment, while a break below support may trigger fresh selling pressure.
Bank Nifty Outperforms But Faces Resistance
Bank Nifty showed relatively stronger performance during Wednesday’s session and formed a bullish candle with a noticeable lower shadow on the daily chart.
According to SBI Securities, the pattern indicates that buyers stepped in aggressively at lower levels. However, the banking index continues to trade below its key short-term and long-term moving averages.
Analysts believe a strong follow-through buying move will be necessary for Bank Nifty to maintain and extend its recovery.
Bank Nifty Resistance:
- 54,600 – 54,700 zone
Bank Nifty Support:
- 53,800 – 53,700 zone
Market Recap
Indian equity benchmarks resumed their downward trend after a brief one-day recovery.
- NSE Nifty 50 declined 77.95 points, or 0.33 per cent, to close at 23,405.60.
- BSE Sensex dropped 303.67 points, or 0.41 per cent, ending the session at 74,346.17.
With GIFT Nifty indicating further weakness and global concerns surrounding technology stocks and crude oil prices, investors are likely to remain cautious at the opening bell.