The Nifty 50 index experienced significant selling pressure on Wednesday, opening nearly 200 points lower before remaining largely range-bound through the session. According to CNBC TV18, the index closed at 23,914, down 0.59%, marking a continuation of the corrective phase that began with Tuesday's recovery from the 23,952 intraday low. The session began with the index opening flat and remaining firm in the first half, but selling pressure intensified throughout the day. At 3:15 pm, the Nifty was at 23,981 before settling at 23,914 at 3:30 pm, with the index remaining below the crucial 24,000 mark that had provided support in previous sessions.
The latest price action has reinforced the sell-on-rise strategy that analysts now recommend, with the formation of lower tops and bottoms pointing to continued weakness. As reported by market analysts, the index continues to form a lower high and lower low on the daily chart, keeping the near-term structure under pressure. The Nifty had managed to hold above its 20-DMA and the 38.2% retracement level for the previous four sessions, but Monday's close below these levels suggests that the ongoing corrective phase remains intact. The current corrective swing is already 10 trading sessions old and has retraced only a little over 38.2% of the sharp six-session rise from the July 24 low to the August 3 high, with selling pressure so far remaining measured rather than aggressive.
On the downside, the 23,800 level remains the crucial support zone, with analysts now identifying this as the immediate and crucial support band. According to CNBC TV18, sustainable move below 23,780-23,750 could extend the weakness towards 23,600, followed by 23,450 in the short term. Conversely, the 24,000-24,050 band, which had acted as an important support zone until recently, is now likely to turn into immediate resistance. The 24,150-24,200 band represents the next major hurdle, with multiple moving averages clustered around these levels. A decisive break below 23,950 could trigger the next leg of correction, while holding above this level could pave the way for a near-term recovery, though higher levels are likely to continue attracting selling pressure.
Among Nifty 50 constituents, ITC, Bharti Airtel and Adani Ports were the top gainers, while Shriram Finance, Maruti Suzuki and Nestle India ended among the biggest laggards. Sectoral performance remained mixed, with IT, FMCG and Oil & Gas outperforming, while Healthcare, Pharma, Realty and Consumer Durables came under pressure and ended among the worst-performing sectors. The broader market also witnessed selling pressure, with the Nifty Midcap 100 declining 1.4% and the Nifty Smallcap index falling 0.23%. The Nifty Bank stood at 57,264 at 3:15 pm and closed at 57,410, while the Sensex moved from 76,725 to 76,944 during the CAS. On Wednesday, Nifty Pharma, Nifty Realty, Nifty PSU Banks and Nifty Healthcare declined, while Nifty FMCG, Nifty Media, Nifty Metals, Nifty Auto and Nifty IT gained during the session.
Despite equity market weakness, domestic economic data remains supportive. India's GDP expanded 7.8% year-on-year in Q1 FY27, beating expectations, with manufacturing and services activity providing support to growth. GST collections rose 14.8% year-on-year to ₹1.99 lakh crore in August, while the Centre's fiscal deficit stood at 26.8% of the FY27 target during April-July. However, the near-term outlook remains challenging amid persistent US-Iran tensions, elevated crude prices and weak foreign institutional investor (FII) flows. Brent crude surged above $95 a barrel following the escalation in the West Asian conflict, while global bond yields have climbed to multi-year highs amid concerns over a near-term US rate hike. The Indian rupee extended its winning streak to a third consecutive session, appreciating 21 paise to close at 94.95 against the US dollar - its strongest level in two months, supported by stronger domestic growth data. GIFT Nifty trades 0.19% higher at 24,097.50, indicating a possible positive start to the Indian equities, while analysts expect the Nifty to remain under pressure in the near term with a sell-on-rise strategy likely to remain in focus.
