Market Wrap

Indian equity markets extended their losing streak for a second consecutive session on Tuesday, with the Nifty opening on a weak note after Monday’s sharp sell-off. The index slipped toward the 25,700 zone in early trade, reflecting cautious global cues and persistent risk aversion. However, buying interest emerged at lower levels, triggering a mild recovery from the day’s lows. Despite this rebound, the market witnessed choppy and indecisive price action throughout the session, with the Nifty eventually settling just below the 25,850 mark, down nearly half a percent.

Sectorally, PSU Banks stood out as the strongest pocket of recovery, rebounding smartly after Monday’s heavy sell-off. The PSU Bank index moved closer to its crucial 50-day exponential moving average, signaling near-term support. Broader market sentiment, however, remained fragile. International cues offered little comfort, as US markets ended lower overnight, dragging Asian and European indices into negative territory.

Adding to the caution were fresh developments on the geopolitical and trade front. A US delegation is scheduled to visit India tomorrow to further trade deal discussions, while President Trump’s latest remarks opposing duty-free Indian rice exports into the US hinted at potential friction in agricultural negotiations. Meanwhile, several stocks saw intraday pullbacks from oversold zones, but the broader technical structure continues to reflect weakness.

Investors also stayed guarded ahead of the US Federal Reserve’s policy meeting, where a 25-basis-point rate cut is widely anticipated - an outcome that could have meaningful implications for global liquidity and risk appetite.

What's Ahead

The market is likely to remain volatile and range-bound in the near term as participants await clarity on the US Fed’s policy decision and the outcome of US–India trade discussions. While intraday dip-buying opportunities are emerging, confidence on the upside remains limited, and the Nifty’s near-term structure stays weak below the 26,000–26,080 resistance zone.

Traders will keep a close watch on global market cues, US monetary policy commentary, and any fresh developments from trade negotiations. On the technical front, immediate support is placed at 25,760 and 25,680, while key resistance levels lie at 25,920, 26,000, and 26,080. A decisive move beyond these zones is needed for clearer directional conviction.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

NIFTY 50 remains under short-term pressure after closing at 25,839.65, slipping below its 20-day EMA and briefly testing the 50-day EMA, which signals weakening momentum. Continued caution ahead of the US Fed policy outcome, persistent FII selling, and ongoing global trade tensions are likely to keep volatility elevated. The RSI slipping below 50 confirms rising selling pressure, suggesting that upside attempts may face resistance near 25,980–26,067. On the downside, immediate support is seen at 25,698 followed by 25,611, and a sustained breach below these levels could open the door for extended consolidation or further downside.

Bank Nifty

Bank Nifty showed relative resilience, ending marginally lower at 59,222.35 and managing to close back above the 20-day EMA after briefly slipping below it intraday. The RSI holding near 55 reflects neutral-to-positive momentum, but the index continues to test the crucial 20-day EMA support for the fifth consecutive session, indicating that a decisive breakdown could trigger sharper selling. As long as it holds above 58,877–58,663, the structure remains stable, while upside resistance is placed at 59,568 and 59,782, beyond which fresh momentum could emerge.

Nifty Financial Services

NIFTY Financial Services closed weaker at 27,549.75 amid broad-based selling pressure in key financial heavyweights, keeping the near-term trend cautious. The index continues to trade below its immediate resistance zone of 27,729–27,830, limiting bullish confidence. Market breadth remains fragile, and unless strong participation emerges from large financial stocks, upside may remain capped. On the downside, supports at 27,400 and 27,299 will be critical to watch, as a breakdown below these levels could deepen the corrective phase.

Sensex

The BSE Sensex closed at 84,666.28 with broad-based selling pressure led by IT and heavyweight stocks, keeping sentiment weak in the near term. With limited support from selective outperformers, the index continues to face pressure below its immediate resistance band of 85,094–85,353. As long as it stays below this zone, upside may remain restricted. On the downside, 84,255 is the first key support, followed by 83,996, and a sustained move below these levels could accelerate the corrective trend.