The Indian stock market is expected to witness a muted start on Wednesday, tracking mixed global cues as investors remain cautious following a sharp selloff in global technology and semiconductor stocks. According to reports from LiveMint, the Gift Nifty was trading near 23,861.5, a premium of 9 points over the previous Nifty futures close of 23,852.50 at 7:54 a.m. Asian markets traded mixed in early trade, while Wall Street ended lower overnight as heavy selling in major technology stocks weighed on investor sentiment.
Domestic equities came under broad-based pressure on Tuesday, with selling visible across sectors and market capitalisation segments. As reported by LiveMint, the BSE Sensex tumbled 893.39 points, or 1.16%, to close at 76,200.68, while the NSE Nifty 50 declined 278.80 points, or 1.16%, to settle at 23,824.10. This marked one of the steepest single-day falls in recent weeks, with the Nifty 50 closing below the 24,000 level, which has been acting as a critical level for the past couple of trading sessions.
According to Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, the 24,000 levels had the highest put base, and now it has the highest call base, whereas on the lower side, 23,500 has an immediate put base, and below that it's directly 23,000 levels. As reported by LiveMint, there was broad-based selling pressure on the day of the weekly expiry of Nifty 50, and from hereon, only a close above 24,000 will indicate a reversal from down to up. The medium-term bias remains positive as long as the 23,000 level is held, however, the short-term bias is sideways to negative until the 24,000 level is taken out on an immediate basis.
Jay Thakkar of ICICI Securities recommends BSE futures, Marico futures, and Mankind Pharma futures for near-term trading opportunities. According to LiveMint, BSE futures can be sold in the range of ₹9,960-9,940 with stop loss at ₹4,020 and targets of ₹3,850-3,780. The stock has closed below the 4,000 level, which has the highest put base, and until those levels are taken out, the short-term bias remains negative. Marico futures can be bought in the range of ₹815-830 with stop loss at ₹795 and targets of ₹860, as the stock has been consolidating within a range and is witnessing an increase in open interest. Mankind Pharma futures can be bought in the range of ₹2,520-2,540 with stop loss below ₹2,440 and targets of ₹2,580-2,610.
