The Nifty 50 recovered 99 points to close at 23,217.60 on Wednesday, showing resilience after Tuesday's sharp sell-off that had pushed the index to a 5-month low of 23,118.60. According to CNBC TV18, the index opened 83 points higher but came under pressure in the first 30 minutes before staging a strong recovery. The Sensex also ended higher, closing at 74,336.45, up around 0.45%, indicating broader market stabilization. The recovery was supported by buying in select heavyweight stocks, though gains remained volatile amid elevated crude prices, global uncertainty and caution ahead of the US Federal Reserve's policy decision. Among Nifty 50 constituents, SBI Life, HDFC Life and ITC were the top gainers, while TCS, Wipro, Infosys and Tech Mahindra emerged as the top laggards after strong gains in the previous session.
On the sectoral front, FMCG, PSU Banks and Realty led the gains, while IT, Healthcare and Pharma ended under pressure, as reported by CNBC TV18. The market decline was broad-based with realty and metal sectors emerging as the top sectoral losers, according to latest market data. The Nifty Midcap 100 ended almost flat, gaining 0.01%, while the Nifty Smallcap 100 declined 0.18%, indicating continued pressure in the broader market amid profit booking in momentum-driven counters. The Nifty Microcap 250 also fell 0.14%, with broader markets remaining subdued and continuing to underperform the Nifty 50. Nifty IT continued to remain weak, with profit taking seen in technology stocks after their recent gains, reflecting the broader trend of profit booking in high-flying sectors.
According to CNBC TV18, Nagaraj Shetti of HDFC Securities said the Nifty is placed near important lower supports around 23,100-23,000 levels, although there are no signs of a strong upside recovery from the lows. Shetti expects the present bounce to form another lower top around the 23,400-23,500 resistance zone, while a slide below 23,000 could trigger another round of sharp weakness. Sudeep Shah of SBI Securities said the 23,070-23,050 zone is expected to act as a crucial support area, with a sustained breach below 23,050 potentially intensifying selling pressure towards 22,900 levels. On the upside, 23,350-23,370 is likely to act as an immediate hurdle, with a sustained move above 23,370 potentially triggering short covering and extending the pullback towards 23,500 levels. Vinay Rajani of HDFC Securities noted that the Nifty found support near the previous day's low and formed a Harami candlestick pattern on the daily chart, which could pave the way for a short-term pullback within the broader downtrend.
The 23,070 level has become an important near-term reference point, representing the lower boundary of the broader consolidation range that has contained the index for much of the past five months. A sustained close below this level could signal further deterioration in market structure and expose the index to deeper levels. On the upside, the first resistance zone is seen between 23,267 and 23,380, with the index needing to reclaim and sustain above this band before short-term setup begins showing signs of stabilisation. Beyond this, the 23,572 to 23,623 zone remains a stronger hurdle, coinciding with the downside gap created on September 9 and potentially attracting selling pressure during recovery attempts. If the index breaks below 23,070, the April 2 low of 22,182.55 would emerge as the next major technical reference point. From its August 3 high, Nifty has corrected by around 1,655 points, translating to a decline of approximately 6.68%.
Looking ahead, Ajit Mishra of Religare Broking said markets are likely to react to the outcome of the US Fed meeting and its commentary in early trade on Thursday, as reported by CNBC TV18. The index held above Tuesday's low and managed a modest recovery after witnessing a deep cut from the day's highs in the previous session. However, markets are likely to remain cautious amid elevated crude prices, continued foreign institutional investor selling and uncertainty ahead of the US Federal Reserve's policy decision. Brent crude remains above $108 per barrel, near a four-month high, while the US 10-year Treasury yield has crossed 5%, keeping inflation and interest-rate concerns elevated. Amid the prevailing uncertainty, experts recommend maintaining a cautious stance with a hedged approach and selective exposure, with the possibility of a recovery not being ruled out if the index holds above the recent swing low near 23,100.
