Nifty 50 Faces Key Resistance as Markets React to Global Factors
The Indian stock market saw a downturn on Wednesday, with the Nifty 50 index slipping 0.77% to close at 23,486.85. This decline erased part of the recent gains, as sectors such as realty, IT, and pharma faced selling pressure. The Bank Nifty followed suit, ending at 51,209. Broader indices also corrected in the range of 0.7% to 1.2% as investors booked profits amid global economic uncertainties.
Trade Setup for Thursday: Key Levels to Watch
Traders are closely monitoring the Nifty 50’s support and resistance levels ahead of Thursday’s session.
- Immediate support is placed at 23,400, aligning with the 100-day and 200-day exponential moving averages (EMAs).
- Strong support is seen at 23,141 for any extended downside correction.
- Potential resistance levels are at 23,600 and 23,869, according to Devarsh Vakil, Head of Prime Research at HDFC Securities.
For Bank Nifty, the next upward move is expected only after breaking through the 52,000–52,100 resistance zone, as per Sameet Chavan, Head of Research for Technical and Derivatives at Angel One.
Global Markets: Profit-Booking and External Headwinds
The Indian market’s decline was in line with global trends, as investors booked profits amid concerns over upcoming U.S. tariff announcements. Stocks with significant exposure to the U.S., including pharma and IT, saw increased selling pressure.
- Oil prices edged higher due to U.S. sanctions on Iran and an expected drop in U.S. crude inventories.
- Foreign Institutional Investors (FIIs) have continued their inflows, supporting stability despite volatility.
- Domestic fundamentals remain strong, suggesting that the market could see a revival in the coming sessions, said Vinod Nair, Head of Research at Geojit Investments Limited.
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Traders and investors are advised to monitor global developments, crude oil movements, and U.S. tariff updates for further cues on market direction. With FIIs maintaining inflows and domestic fundamentals intact, the market could see increased stability in the coming sessions.
