Major Indian stock market indices closed lower, with the Nifty index slipping below the 23,350 mark. At the close, the Sensex fell 329.91 points (0.44%) to 74,529.08, while the Nifty dropped 85.30 points (0.36%) to 23,329.
From a technical perspective, the Nifty index faced resistance in the 23,450–23,500 range and closed below 23,400, indicating a lack of upward momentum. Market breadth failed to sustain the opening gains, and short-term intraday momentum weakened. Immediate support lies at 23,300, followed by 23,200 and 23,000, while the 23,500–23,600 zone remains a key resistance area. The Bank Nifty index needs to hold the 56,000 mark, with resistance situated between 56,500 and 56,800.
We believe the 23,300/74,500 and 23,250/74,300 levels remain strong support zones for traders. A hold above these levels could see the market rebound to the 23,500–23,575/75,000–75,300 range. Conversely, a drop below 23,250/74,300 could intensify selling pressure, increasing the likelihood of a decline toward 23,100–23,050/74,000–73,700.
Despite softer oil prices and declining bond yields, Indian markets failed to sustain their opening gains due to geopolitical uncertainties and position adjustments ahead of the weekly options expiry; profit-booking at higher levels ensued, with IT stocks leading the decline. The drop in Brent crude prices below $100 has created a favorable environment for the domestic market; however, to regain recovery momentum, the market needs to hold the 23,300-point level and reclaim the 23,500 mark with broader participation. A breach of the 23,300 level could see the decline extend to 23,200, while low volatility may keep short-term trading confined to a range-bound pattern.