Nifty Falls 126 Points to 24,207 Amid Selling Pressure

The Nifty index closed 126 points lower at 24,207 on Wednesday, failing to sustain Tuesday’s gains as intensified selling pressure mounted throughout the session.

The benchmark index opened nearly flat, gaining just 7 points, before extending gains in the initial 45 minutes to reach an intraday high of 24,378. However, selling pressure picked up significantly after 10 am.

Key Market Figures

• Nifty closing: 24,207
• Points declined: 126
• Intraday high: 24,378
• Intraday low: dragged 171 points from high
• Closing auction loss: almost 70 points
• Nifty Midcap index: declined 0.10%
• Nifty Smallcap index: gained 0.81% to a record high

The Nifty 50 saw a mixed performance among its constituents, with specific sectors showing resilience while others faced declines. Broader markets also presented a varied picture, reflecting the day’s underlying volatility.

Top Movers and Laggards

• Top Gainers: Kotak Mahindra Bank, Axis Bank, JSW Steel
• Top Laggards: Bharti Airtel, Power Grid, Infosys

Sectoral performance was mixed; Cement, Metal, Chemical, and Private Bank indices performed well. Conversely, IT, FMCG, and Consumer Durables sectors recorded declines, contributing to the overall downward trend.

Analyst Outlook: Crucial Levels Ahead

Analysts anticipate Indian equities will likely remain range-bound, influenced by mixed global cues and upcoming international events such as US Q2 GDP data, inflation figures, and Nvidia’s earnings.

• Nandish Shah of HDFC Securities noted the Nifty faced resistance near its 200-day DEMA and saw profit booking, indicating renewed selling pressure.
• Shah identifies the 24,100-24,400 range as crucial, stating a break above 24,400 signals renewed strength and a break below 24,100 indicates further weakness.
• Osho Krishan of Angel One highlighted the Nifty’s continued resistance around its 20-day DEMA, suggesting a sustained breakout above this level is needed for upward momentum.
• Krishan views 24,200 as a critical support level, with a decisive break potentially leading to 24,050.
• Nagaraj Shetti of HDFC Securities emphasized the 24,100-24,400 range, noting a move above 24,400-24,500 could confirm a valid breakout for a sustainable upmove.
• Shetti warned that a fall below the 24,100-24,000 support zone could trigger fresh weakness.
• Sudeep Shah of SBI Securities identified 24,070-24,040 as the immediate support zone and 24,340-24,360 as the immediate resistance zone.
• Rupak De of LKP Securities cautioned that a fall below 24,130 could trigger a sharper correction, potentially taking the Nifty towards 23,900 and 23,700, with 24,350 remaining a strong resistance level.

The market’s immediate trajectory hinges on its ability to hold key support levels and respond to upcoming global economic indicators, maintaining a cautious near-term outlook among experts.