Profit-taking knocked the wind out of the markets on Tuesday, but analysts say the Nifty 50 isn’t done just yet. All eyes are now on whether the index holds firm near the 24,400–24,500 support zone, even as geopolitical noise and macro data keep investors guessing.
The benchmark Nifty 50 ended Tuesday at 24,578.35 — down 1.39%. Bank Nifty slipped 0.8%, closing at 54,940.80. Pharma stocks held their ground. But IT, FMCG, and auto took the brunt. Despite the red in large caps, mid and small-cap indices added up to 0.8%.
Tensions in the subcontinent and inflation data at home and abroad are likely to keep traders on their toes heading into Wednesday.
Key Index Levels Still Intact — But For How Long?
The short-term uptrend hasn’t snapped yet. Not just yet.
Analysts are betting on a bounce from the crucial support zone between 24,400 and 24,500. This isn’t just a technical cushion. It’s psychological too. “A reversal here looks likely,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
There’s immediate resistance sitting around 24,800. If that’s breached convincingly, bulls might just find a second wind. But Tuesday’s action does call for caution.
Just one sentence: Profit booking doesn’t always mean panic.
Bank Nifty’s structure remains solid too. Bajaj Broking expects it to head towards 56,400 soon, as long as the 54,000–54,500 support zone holds.
Here’s what the Nifty and Bank Nifty levels look like at a glance:
| Index | Support Range | Resistance Level | Short-Term Bias |
|---|---|---|---|
| Nifty 50 | 24,400 – 24,500 | 24,800 | Positive Bias |
| Bank Nifty | 54,000 – 54,500 | 56,400 | Positive Bias |
Global Signals, Local Fears: India-Pakistan Tensions Stir Unease
Geopolitics just added another layer of uncertainty — and this time, it’s closer to home.
Recent developments between India and Pakistan have rattled nerves, especially with media coverage around diplomatic frictions and cross-border rhetoric. Though markets haven’t overreacted, the undertone of caution is unmistakable.
One trader said bluntly, “All it takes is one headline and the algos go nuts.”
Institutional investors haven’t turned their backs. But flows have been selective and cautious — a far cry from the bullish frenzy of April.
Even retail investors, typically more aggressive, seem to be treading carefully.
Basically, people are watching… but not diving in.
Earnings Season: A Mixed Bag So Far
Q4 earnings have been a bit of a mixed plate — some spicy beats, a few undercooked misses.
IT majors were first out of the gate, and while some surprised, others showed pressure on margins. FMCG players blamed input costs and rural demand, again.
Pharma showed up well though, and that’s reflected in Tuesday’s gains too.
Motilal Oswal’s Siddhartha Khemka points to upcoming CPI data from both India and the U.S. as major sentiment movers this week. “These numbers will either confirm or challenge the rate cut optimism that’s still floating around,” he said.
There’s also the small matter of FII behavior post-CPI. Last week saw inflows, but they may not stick if inflation disappoints.
Eight Stocks Traders Are Watching Today
Despite the broader softness, experts aren’t short on ideas.
Here are eight stocks that analysts have tagged for buying or selling based on Wednesday’s setup:
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Buy: Schaeffler India Ltd – Technical structure remains strong with room to move.
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Buy: Nippon Life India Asset Management Ltd – Bounce from support levels expected.
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Sell: Canara Bank – May face resistance near ₹114–115 zone.
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Buy: Cholamandalam Investment and Finance – Holding firm, potential breakout ahead.
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Sell: Balrampur Chini – Weak charts, lower highs visible.
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Buy: M&M Financial Services – Positive chart pattern formation.
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Sell: Manappuram Finance – Bearish engulfing on daily chart, likely pressure.
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Buy: BHEL – Recovery from oversold zone.
These calls come from a mix of brokerages including Choice Broking, Anand Rathi, and Prabhudas Lilladher.
Each one comes with technical backing, though as always, investors are advised to keep tight stop losses and not get too greedy. Volatility is likely to remain high.
What Could Jolt the Market Midweek?
Three things. Just three.
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India’s CPI numbers — A softer reading could revive rate cut hopes.
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U.S. CPI data — A surprise here affects global flows almost instantly.
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Geopolitical headlines — Especially those tied to the India-Pakistan border or South Asia in general.
Wednesday could swing either way. Momentum is fragile. One unexpected update and the index could slip — or surge — faster than you can hit refresh on your trading app.
