Benchmark indices slipped for a second straight session on Wednesday, weighed down by foreign institutional investor (FII) outflows, elevated market valuations, and lingering global and domestic uncertainties.
Key Market Closures:
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BSE Sensex: Down 239.31 points to 81,312.32
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NSE Nifty50: Fell 73.75 points to 24,752.45
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Broader indices: Closed in the red, mirroring the weak sentiment
Market Sentiment:
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Vinod Nair (Geojit Financial Services) attributed the weakness to:
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Lack of FII support
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High valuations
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India-US trade concerns, particularly after the end of the 90-day pause
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However, positive domestic cues—like a better monsoon forecast, easing inflation, and strong Q4 GDP expectations—could cushion further downside.
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Sustainable recovery hinges on better corporate earnings visibility.
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Sundar Kewat (Ashika Institutional Equity) noted:
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Nifty opened flat at 24,832, moved narrowly between 24,737 – 24,864, and lacked decisive momentum.
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Sectoral Performance:
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Gainers: Media, PSU Banks, Financial Services, Energy
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Losers: Consumer Goods, Consumption, Metals, Pharma
This mixed sectoral performance highlights rotation within the market, with defensives and financials showing relative strength, while cyclical and consumption-oriented stocks lagged.
Derivatives and Technical Indicators:
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Stocks with significant open interest buildup:
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Gainers: LIC Housing Finance, Hindustan Copper, Aurobindo Pharma, ONGC, IRCTC
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Options data:
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Call OI highest at 25,000, signaling resistance near that level
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Put OI concentrated at 24,800 and 24,000, suggesting these as key support zones
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Put-Call Ratio (PCR) at 0.70 signals bearish sentiment
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Global Overhang:
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Caution globally, especially with China poised to recover $22 billion in BRI loan repayments, raising fears of debt distress in developing countries and spillover risks to emerging markets.
Outlook:
Markets appear to be in a wait-and-watch mode, consolidating within a range. While macro positives in India offer support, external risks, expensive valuations, and technical indecisiveness suggest that traders may continue to adopt a cautious approach in the short term. A clear breakout above 25,000 or breakdown below 24,700 on the Nifty could guide the next directional move.
