The Indian stock market is staring at a cautious start on Wednesday as traders weigh global uncertainties, including U.S. President Donald Trump’s upcoming tariff announcement. After a sharp selloff on Tuesday, market participants will be closely watching key levels in Nifty 50 and Sensex to gauge the next move.
Mixed Global Cues Keep Investors on Edge
Traders looking for a directional cue from global markets might be left disappointed. Overnight, Wall Street ended mixed as investors tread carefully ahead of Trump’s new set of trade measures. Asian markets also reflected a cautious sentiment, with most indices trading in a tight range.
- The Gift Nifty indicated a flat start, trading at 23,327, which is nearly four points below the Nifty futures’ last close.
- U.S. equity indices showed limited movement, with the Dow slipping marginally while the Nasdaq ended in the green.
- European markets finished lower on Tuesday as concerns over fresh trade barriers intensified.
With geopolitical and macroeconomic uncertainty persisting, Indian traders will have their eyes glued to how Trump’s tariffs impact global sentiment.
Nifty 50 and Sensex Technical Outlook
Technical indicators suggest the Indian market remains under pressure after Tuesday’s selloff. Both Sensex and Nifty 50 formed long bearish candles on the daily charts, signaling strong selling pressure at higher levels.
- The Nifty 50 fell 353.65 points (1.50%) to close at 23,165.70.
- The Sensex dropped 1,390.41 points (1.80%) to settle at 76,024.51.
- Bank Nifty ended lower by over 2%, indicating weakness in financial stocks.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted key support and resistance zones. “For traders, 75,800 is the key support level on Sensex. A move above this could lead to a pullback toward 76,500-76,650. However, breaking below 75,800 could trigger fresh selling, dragging the index toward 75,500 or even 75,300,” he noted.
Sector-Wise Performance and Key Stocks to Watch
Different sectors faced varying levels of heat in Tuesday’s trading session. While some stocks managed to show resilience, broader sentiment remained weak.
- Banking & Financials: Heavyweights such as HDFC Bank and ICICI Bank saw sharp declines, leading to a significant drop in Bank Nifty.
- IT Stocks: Infosys and TCS managed to stay relatively stable amid mixed global cues.
- Auto Sector: Maruti Suzuki and Tata Motors experienced selling pressure as investors booked profits.
- Metals & Commodities: Stocks in the metal sector saw declines amid concerns over global trade barriers.
Among stocks to watch, Reliance Industries, Infosys, and HDFC Bank will be in focus as traders assess institutional flows and global market trends.
Possible Market Scenarios for Wednesday
Considering current conditions, three potential scenarios could unfold in Wednesday’s trading session:
| Scenario | Possible Market Reaction |
|---|---|
| Flat to Slightly Positive Open | Markets consolidate near Tuesday’s lows, with a possibility of intraday recovery if key supports hold. |
| Break Below Key Support (75,800 on Sensex) | Heavy selling could resume, dragging indices toward lower support zones. |
| Stronger Global Cues & Institutional Buying | Nifty 50 could attempt a bounce-back toward 23,300-23,400 zones. |
With volatility expected to persist, traders are likely to tread carefully, using stop-loss strategies to navigate the uncertain landscape.
Institutional Flows and Market Sentiment
Foreign institutional investors (FIIs) played a major role in Tuesday’s decline, offloading significant holdings across key sectors. Domestic institutional investors (DIIs), on the other hand, attempted to absorb some of the selling pressure.
- FIIs net sold nearly Rs 3,000 crore worth of equities on Tuesday.
- DIIs stepped in with buying worth Rs 2,200 crore, limiting losses to an extent.
If FII outflows persist, further pressure on indices cannot be ruled out. However, a reversal in sentiment could provide some much-needed relief.
Key Levels to Track
For traders and investors, keeping an eye on crucial levels will be essential:
- Nifty 50: Resistance at 23,300-23,400, support at 23,050-22,900.
- Sensex: Resistance at 76,500-76,650, support at 75,800-75,300.
- Bank Nifty: Resistance at 49,300-49,500, support at 48,600-48,200.
With global headlines and technical setups guiding sentiment, Wednesday’s trade session will likely be a battle between bulls and bears.
