The index opened with a gap-down of 93 points amid weak global cues and remained under sustained selling pressure throughout the trading session.
With Tuesday’s decline, the Nifty has now corrected more than 1,100 points from its recent swing high of 24,482 in just four sessions, highlighting the intensity of the ongoing bearish momentum. The index also breached the crucial 23,500 support level and continues to trade below it.
Markets remained under pressure amid escalating tensions in the Middle East, record weakness in the rupee and a rise in bond yields. Weak indications from GIFT Nifty also weighed on sentiment at the opening.
IT, financial and consumer-related stocks emerged among the biggest laggards, while selective buying was visible in oil and gas counters.
Volatility remained elevated during the session due to positioning ahead of the derivatives expiry.
Despite the broader weakness, Oil and Natural Gas Corporation, Hindalco Industries and State Bank of India managed to close as the top gainers on the Nifty. On the losing side, Adani Ports and Special Economic Zone, Shriram Finance and Tech Mahindra were among the top drags.
The weakness was widespread across sectors, with all major sectoral indices ending in the red. Realty, IT and consumer durables stocks emerged as the worst-performing pockets of the market.
Broader markets also mirrored the negative sentiment. The Nifty Midcap 100 index declined 2.54%, while the Nifty Smallcap 100 index plunged 3.17%.
Investors will now closely monitor India’s April 2026 retail inflation data, scheduled to be released by the Ministry of Statistics and Programme Implementation (MoSPI) later today.
The inflation print is expected to play an important role in shaping expectations around the RBI’s future policy stance, especially amid rising crude oil prices and persistent currency weakness.
Overall market sentiment is likely to remain fragile until there is greater clarity on geopolitical developments and stability in global energy prices.
Technically, Nifty is now trading below its 10, 20, 50, 100 and 200-day exponential moving averages (DEMA), indicating a broad-based bearish trend across multiple time frames, said HDFC Securities analyst Nandish Shah.
He added that the earlier support level of 23,800 is now likely to act as resistance on any pullback, while immediate support is placed near 23,100.
Nilesh Jain of Centrum Broking said the broader market structure has turned bearish, with the index likely to drift towards the gap area near 23,150 in the near term.
However, Jain added that after the recent sharp correction, the possibility of a pullback rally cannot be ruled out, although any rebound may face selling pressure at higher levels.
According to Vikram Kasat of Prabhudas Lilladher, investors will continue to track crude oil prices, rupee movement, geopolitical developments and upcoming macroeconomic data points, which are expected to determine the market’s near-term direction.
Meanwhile, the banking benchmark index, Bank Nifty, also witnessed a sharp correction on Tuesday, declining by 1.63% and marking its third consecutive session of losses.
The index is currently trading well below its key moving averages, indicating a weakening trend structure.
As long as Bank Nifty remains below the 54,200 level, the prevailing downtrend is expected to continue, with the index likely to drift towards 53,000 in the near term, followed by a potential decline towards the 52,500 level, said Sudeep Shah of SBI Securities.
