Indian equity markets recorded a sharp decline on Wednesday amid weak global cues and rising geopolitical uncertainty, with broad-based selling across sectors. Trading began on a weak note and investor caution persisted throughout the session. The market moved within a limited range during the day and occasional attempts at recovery were observed, but pressure remained until the close.
The Nifty 50 ultimately closed at 24,480.50, down about 1.55 percent. The decline extended the losing streak seen over the past few sessions. Increased volatility and weak global signals affected investor confidence, which was reflected in cautious trading during the session.
Metal and realty stocks recorded the steepest declines during Wednesday’s trade. Shares in the metal, realty and energy sectors witnessed notable selling pressure, adding to the broader market weakness.
The information technology sector performed relatively better compared with other sectors. Select IT stocks registered mild gains, providing limited support to the market.
Weakness was also visible in the broader market. Midcap and smallcap indices declined by more than 2 percent, indicating that selling was not limited to large-cap stocks but also extended to mid-sized and smaller companies.
Several factors contributed to the market’s weakness. Negative signals from global markets remained a key factor. Rising crude oil prices and geopolitical tensions also weighed on market sentiment.
Continuous selling by foreign institutional investors (FII) added further pressure on the market. Fluctuations in the rupee and global economic uncertainty made investors more cautious during the trading session.
Ajit Mishra, Senior Vice President, Research at Religare Broking, said the breach of the 24,600 support level on the Nifty is a concern for the market. According to him, this level was considered technically important and its breakdown has made the market’s weakness more evident.
He added that India VIX has surged by more than 50 percent this week, indicating increased nervousness and volatility in the market.
According to Mishra, the next major support for the Nifty is seen around 24,050. This level is close to the 100 weekly exponential moving average, which is considered a b technical support.
If a recovery occurs, the range of 24,600 to 24,800 could act as a b resistance zone. Without sustaining above this level, expectations of a significant market rally may remain limited.
Mishra said market volatility remains elevated and global signals continue to be weak. In such an environment, investors should trade cautiously.
He advised investors to maintain smaller positions and follow disciplined trading practices. He added that it would be preferable to avoid taking large decisions in haste while market conditions remain uncertain.
Despite the broader weakness, Mishra identified certain stocks where technical indicators suggest potential opportunities.
Coal India is currently trading around ₹435.15 and a buy recommendation has been suggested. The stock has a target of ₹465 with a stop loss of ₹418.
Analysts said Coal India has managed to build a b base following a recent consolidation breakout. The stock has remained above its key weekly moving averages.
A bullish candle formed with b volumes indicates the possibility of fresh buying interest. The stock has also shown relatively better performance despite the current market decline.
Lupin is currently trading around ₹2,304.90 and a buy recommendation has also been suggested for the stock. The target is ₹2,460 with a stop loss of ₹2,215.
According to analysts, Lupin has been forming higher highs and higher lows, which indicates a b upward trend. A clear breakout has been observed after a prolonged consolidation phase.
The stock is trading above its key moving averages, which are acting as b support levels, indicating potential for further upside based on technical analysis.
In contrast, signs of weakness are visible in certain stocks. Hindustan Unilever is currently trading around ₹2,270.20 and a selling strategy in futures has been suggested.
The stock has a target of ₹2,120 with a stop loss of ₹2,340.
Analysts said the FMCG sector currently reflects a mixed trend, but Hindustan Unilever has remained relatively weak in recent months.
A recent rebound stalled near the 200 EMA, reinforcing the downward bias. The stock has also slipped below its trading range and is forming a bearish flag pattern, which signals the possibility of further decline.
