The Indian stock market saw continued volatility on Tuesday, with benchmark indices Nifty 50 and S&P BSE Sensex ending the day with slight losses after Monday's rebound. The Nifty 50 index closed at 23,727.65, marking a 0.11% decline, while the S&P BSE Sensex ended at 78,472.87, also facing a similar loss. The Bank Nifty, which tracks banking stocks, fell 0.16% to close at 51,233.00. In sectoral performance, FMCG and auto stocks showed minor gains, while metal, IT, and other sectors faced selling pressure.
The broader market indices also remained volatile and closed near the flatline. Although Wednesday was a market holiday, analysts expect the market's cautious sentiment to persist. The near-term outlook for Nifty remains weak, with no significant signs of reversal at lower levels. Immediate resistance is seen around 23,900-24,000 levels, and support lies at 23,500, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
The Bank Nifty's trend remains bearish, with a potential further decline if the index falls below the 51,000 mark. If this level is breached, a selling pressure toward the 50,500 levels, which is the 200-day moving average (DMA), could be observed, noted Kunal Shah, Senior Technical and Derivative Research Analyst at Mirae Asset Sharekhan.
Most global markets, along with the Indian markets, remained closed on Wednesday due to the holiday season. The near-term trajectory of the Indian stock market will largely depend on upcoming Q3 results and the Union Budget. However, cautious sentiments prevail due to several factors, including a strong US dollar, rising bond yields, and concerns about rate cuts. Additionally, the Indian Rupee hitting an all-time low has raised further concerns in the market, according to Vinod Nair, Head of Research at Geojit Financial Services.
