Indian stocks continue their downward trend, with traders closely watching whether the Nifty 50 can hold the 22,600 level amid signs of cautious optimism and persistent bearish momentum.
Indian equities slipped further on Tuesday, extending a weak run that has left traders focused on whether the Nifty 50 can defend the 22,600 area in Wednesday’s session. The Sensex fell 243 points, or 0.3%, to 72,529, while the Nifty 50 lost 64 points, or 0.3%, to finish at 22,716. Technical analysts said the market has not yet shown enough strength to suggest a durable reversal, even though brief intraday recoveries remain possible.
Shrikant Chouhan, head of equity research at Kotak Securities, said the short-term trend is still fragile and that 22,600 is the key level to watch on the Nifty. He said a rebound could extend towards 22,850 to 23,000 if that floor holds, but warned that a clear break below it could deepen the decline towards 22,500 or even 22,400. That view broadly matches other market commentary pointing to the 23,000 zone as a major area of stress, with Jatin Gedia of Teji Mandi Investment Technologies and other analysts flagging downside risk if the index fails to regain that band.
Some indicators suggest the selling pressure may be easing, even if the broader tone remains negative. Hariselvan Radhakrishnan, founder and chief executive of HST Wealth, said the India VIX eased to 13.35 and the put-call ratio improved to 0.86, signs that near-term panic has moderated. Still, he said the market remains inclined to sell on rallies until the Nifty climbs back above 23,500. He added that a stronger recovery would likely need support from financial stocks and a more stable global backdrop.
Bank Nifty also stayed under pressure, falling 0.39% and adding to the weakness in financial shares. Sudeep Shah, head of technical and derivatives research at SBI Securities, said the index formed a thin-bodied hammer candle with a long lower wick, which suggests some buying interest emerged at lower levels. Even so, he noted that the index remains below key exponential moving averages, while the relative strength index is still below 30 and the MACD continues to point lower, both signs of persistent bearish momentum. Shah said 53,800 to 53,700 is the immediate support zone, with 53,200 below that, while 54,700 to 54,800 stands as the first hurdle on the upside.
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