The Indian stock market extended losses on Wednesday, with the S&P BSE Sensex declining 188 points to close at 77,966 and the Nifty 50 index falling 36 points to end at 24,436, according to The Economic Times. The market recovered significant losses, as the benchmark indices had fallen nearly 1% intraday before staging a recovery. The BSE 150 MidCap Index shed 0.02% while the BSE 250 SmallCap Index fell 0.27%. Market breadth remained negative with 1,504 shares rising, 1,867 shares falling, and 105 shares unchanged on the NSE. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 3.73% to 11.79.
Tata Group stocks emerged as the primary drag on market performance following the announcement that Tata Sons Chairman N Chandrasekaran decided not to offer himself for reappointment when his current term ends on February 20, 2027. The announcement triggered a sharp selloff across Tata Group stocks, with TCS falling 3.93%, Tata Consumer Products declining 1.49%, Tata Motors Passenger Vehicles slipping 1.32%, Tata Steel falling 1.09%, Titan Company declining 0.57%, Trent dropping 0.43%, and Tata Power slipping 0.14%. According to The Economic Times, this decision created significant selling pressure that weighed heavily on the broader market. TD Power Systems rose 16.34% after reporting strong Q1 FY27 performance with profit after tax increasing 72.3% YoY to ₹86.29 crore and revenue rising 72.1% YoY to ₹640.05 crore.
Elevated crude oil prices, which retested the $90/barrel level, weighed on investor confidence and triggered broad-based risk-off selling despite supportive cues from Asian peers, as noted by Vinod Nair, Head of Research at Geojit Investments to The Economic Times. Markets remained on edge ahead of key inflation readings in India and the US, with policymakers on both sides underscoring a data-driven approach amid heightened global uncertainty. Defying the broader weakness, PSU banks extended gains on the back of robust asset quality, attractive valuations and healthy credit growth outlooks, while metal stocks outperformed on expectations of tighter supply conditions, according to Nair. Tech view suggests the Nifty 50 continued to fall after slipping below 24,400, leading to a decline towards 24,250, with the index finding support around the 200-hour SMA before staging a recovery.
Among sectors, Nifty PSU Bank rose 2.05%, Nifty Media gained 1.05%, Nifty Bank advanced 0.77% and Nifty Metal added 0.54%. However, Nifty IT fell 1.54%, India VIX declined 1.43% and Nifty FMCG slipped 0.73%. Most active stocks in terms of turnover included Tenneco Clean Air (₹3,100 crore), Finolex Cables (₹2,652 crore), Godrej Consumer (₹2,081 crore), Bharti Airtel (₹2,077 crore), Hindustan Copper (₹2,049 crore), HDFC Bank (₹1,914 crore) and SBI (₹1,908 crore). Most actively traded stocks in volume terms were Vodafone Idea (77.25 crore shares), Yes Bank (6.83 crore shares), Tenneco Clean Air (5.85 crore shares), PNB (5.12 crore shares), Zee Entertainment Enterprises (4.54 crore shares), Suzlon Energy (4.18 crore shares), and Ola Electric (4.04 crore shares). Stocks showing buying interest included NALCO, Apar Industries, Zee Enterprises, Finolex Cables, Supreme Petro, Vijaya Diagnostic and Force Motors, while stocks witnessing selling pressure were Godrej Consumer Products, PI Industries, Jubiliant Pharmanova, Orient Refractories, Techno Electric, Caplin Point and AIA Engineering.
Technically, after a sharp intraday dip, the Nifty took support near the 20-day SMA and bounced back sharply. According to TradingView News, the 20-day SMA or 24,300/77,500 would act as key support zones for traders. If the market manages to trade above these levels, it could bounce back to 24,500-24,600 / 78,500-78,800. On the flip side, below 24,300/77,500, selling pressure is likely to accelerate. Below this, the market could slip to 24,150-24,100 / 77,000-76,800. On the daily timeframe, the index has managed to close above the 20EMA. However, the RSI indicator is in a bearish crossover, indicating weak momentum. A sustained fall below 24,400 on Thursday might again drag the index towards 24,180. On the higher end, 24,500 is likely to act as a crucial resistance, and a sustained move above this level might improve the trend.
