Indian benchmark indices, the Sensex and Nifty, experienced a significant decline on Tuesday, failing to sustain Monday's gains. The Sensex dropped 416.72 points, or 0.54 per cent, to close at 76,886.91, while the Nifty declined 97 points, or 0.40 per cent, settling at 23,995.70. This marks the fourth fall in the last five trading sessions, reflecting ongoing market volatility.
Analysts attribute the downturn primarily to persistent geopolitical uncertainty, particularly concerning US–Iran negotiations, which has kept crude oil prices elevated. Additionally, regulatory developments impacting provisioning norms put pressure on banking stocks, further capping any potential upside.
Market Performance Overview
Despite these headwinds, selective buying in index heavyweights and commodity-linked stocks, alongside specific earnings triggers, provided some cushion against a steeper fall. However, market breadth remained tentative, signaling a pronounced tug-of-war between bullish and bearish sentiments among investors.
Nifty's Technical Outlook
Osho Krishan of Angle One noted that the Nifty has remained range-bound between its 20-day and 50-day Daily Exponential Moving Averages (DEMAs) in recent sessions, indicating a lack of clear directional bias. Krishan highlighted immediate support for Nifty in the 23,800-23,750 zone, with a stronger cushion near the bullish gap in the 23,550-23,500 range. Conversely, a sustained move above 24,250-24,300 could revive buying interest, with key resistance around 24,550-24,600. Until clearer strength emerges, a 'buy-on-dips' approach appears prudent.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that Nifty faced selling pressure around 24,200 levels, forming a small bearish candle. This action suggests range-bound movement with a weak bias. Shetti affirmed that the short-term uptrend status remains intact, with Nifty potentially forming a higher bottom at 23,813 on April 24. A decisive move above the immediate resistance of 24,200 could reignite bullish activity, while immediate support is placed at 23,800 levels.
Sensex: Consolidation and Key Levels
For the Sensex, Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, indicated that the index is currently trading in a consolidation phase following recent volatility, reflecting indecisiveness among market participants. Tailor identified the 76,300-76,400 zone as immediate support, likely acting as a key demand area on declines. On the upside, resistance is anticipated around the 77,300-77,500 zone, where supply pressure may cap further gains.
The near-term outlook for Sensex remains cautious with a slight negative bias due to persistent intermittent selling pressure. While selective buying is visible, ongoing geopolitical uncertainties and global market cues are expected to keep volatility elevated, limiting sharp directional moves in the short term.