The Indian stock market faced a significant downturn, with the NSE Nifty 50 closing at 23,165.70, marking a drop of 353.65 points or 1.5%. Similarly, the BSE Sensex plummeted by 1,390.41 points or 1.80%, settling at 76,024.51. This decline represents the lowest levels for both indices since mid-March, raising concerns among investors about the market’s direction.

Market Trends and Analyst Insights

According to market analysts, the Nifty 50 is likely to encounter resistance around the 23,800 mark. On the downside, support appears to be firm at approximately 23,000. Sundar Kewat, a technical analyst from Ashika Institutional Equity, noted that if 23,150 is breached, traders should focus on the next support level at 23,000. A consistent decline below this threshold could lead to increased selling pressure, potentially pushing the index down to 22,500.

• Immediate Support Levels:

  • 23,150
  • 23,000
• Potential Resistance Levels:
  • 23,800

Market Sentiment and Future Projections

Aditya Gaggar, Director at Progressive Share Brokers Pvt., indicated that the downside is somewhat cushioned by the 50-day moving average and the market nearing oversold conditions. Meanwhile, Vikas Jain, head of research at Reliance Securities, expects some resistance at 23,800 and identifies a key support level around 23,200.

As for the Bank Nifty, analysts predict it will test the lower range of 50,500, with resistance anticipated at 52,000. Jain also suggested that the index may consolidate at its current levels, with support identified near 50,350.

Trading Updates and Foreign Investment Insights

On Wednesday morning, the GIFT Nifty saw a slight increase, trading up 0.19% to reach 23,330.00 at 7:23 a.m.. The market’s decline has been attributed to the underperformance of major banking stocks, including HDFC Bank and ICICI Bank.

On the derivatives side, Nifty April futures dipped 1.39%, reflecting a premium of 155.7 points. Open interest has increased by 1.98%, with most activity centered around 25,400 call strikes and 22,500 put strikes.

In terms of foreign investments, Foreign Portfolio Investors (FPIs) net sold equities worth approximately ₹5,901.63 crore on Tuesday. In contrast, domestic institutional investors remained net buyers, acquiring equities valued at ₹4,322.58 crore for the third consecutive session.

Global Market Influences

Globally, markets in the Asia-Pacific region showed mixed results as traders awaited updates on U.S. tariffs. The Nikkei 225 was slightly up by 0.03%, while the Kospi fell by 0.29%. Following a positive trend, most U.S. indices closed higher the previous day, with the S&P 500 and Nasdaq Composite rising by 0.38% and 0.87%, respectively.

Company Highlights

Several firms reported their quarterly performance:

• V-Mart Retail: Achieved a 17% increase in total sales, reaching ₹780 crore, with same-store growth at 8%.
• CSB Bank: Noted a 24% rise in total deposits, amounting to ₹36,861 crore.
• SJVN: Successfully completed the trial run of a 241.77 MW capacity solar project in Bikaner.

As the market continues to navigate these challenges, investors are advised to stay informed about upcoming support and resistance levels while monitoring global cues.