Market Wrap

Indian equities remained under pressure on Wednesday, with the Nifty closing around 23,914, down 0.59%, as persistent selling kept sentiment weak through the session. The broader market also declined, while the Nifty Auto Index fell more than 1.5%, making autos one of the key laggards.

The sell-off was driven primarily by worsening global risk sentiment after renewed US-Iran military tensions pushed crude oil higher. Brent crude moved above $95 a barrel, reviving concerns over inflation, bond yields and the global interest-rate outlook. Asian equities also weakened, led by declines in Japan and South Korea, while European markets showed greater resilience but failed to restore broader risk appetite.

What's Ahead

The US-Iran conflict and crude oil prices will remain the key drivers for Thursday’s session. A sustained rise in energy prices could intensify inflation concerns for India and weigh on oil-sensitive and rate-sensitive sectors.

Investors will also track global bond yields, the rupee and upcoming US economic data for clues on the Federal Reserve’s next policy move. Domestic FII and DII flows could provide some cushioning, but near-term sentiment is likely to remain cautious until geopolitical tensions show signs of easing.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its decline for the third consecutive session, falling 141.35 points or 0.59% to close at 23,914.45. The index opened lower at 23,858 and remained under pressure, touching 23,786.80 before recovering to close at the session high. However, the RSI slipping below 40 indicates weakening momentum and continued selling pressure. The near-term setup remains cautious to bearish, with 23,769 and 23,678 emerging as immediate support levels, while 24,060 and 24,151 are likely to act as resistance zones. A sustained move above 24,060 could improve sentiment, whereas a break below 23,769 may extend the downside.

BankNifty

The NIFTY BANK declined 237.60 points or 0.41% to settle at 57,172, extending its cautious trend despite some strength in PSU banks. The index opened at 57,006.45, slipped to 56,823.20 and struggled to sustain recovery attempts, although it closed close to the session high. The RSI eased towards 45, pointing to fading momentum and a mildly bearish undertone. The immediate support zone is placed at 56,888–56,713, while 57,456–57,631 remains the key resistance band. The index would need to reclaim 57,456 to strengthen the recovery setup, while a decisive break below 56,713 could increase selling pressure.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index fell 190.85 points or 0.73% to 25,813.05, with weakness across insurers, banks and other financial counters keeping the index under pressure. The slightly negative breadth, with 9 stocks advancing against 11 declining, reinforces the cautious tone. Technically, the index faces immediate support at 25,619 and 25,498, while 26,008 and 26,128 are the key resistance levels. The near-term setup remains weak, and a sustained move below 25,619 could open the door for further downside, whereas a recovery above 26,008 would be required to signal improving momentum.

Sensex

The BSE SENSEX declined 373.93 points or 0.49% to close at 76,570.35, with selling concentrated in heavyweight financial, technology and automobile stocks. The index saw negative breadth, with only 10 constituents advancing against 20 declining, keeping the technical setup subdued. Immediate support is placed at 76,119 and 75,840, while 77,022 and 77,301 remain the key resistance levels. The index is likely to maintain a cautious bias in the near term, with a break below 76,119 potentially intensifying selling pressure, while a sustained move above 77,022 could provide signs of a recovery.