The 50-stock Nifty closed lower for the tenth straight session on Tuesday, leaving investors concerned on the worth of their shareholdings. Of the last 19 trading sessions, Nifty has closed in the green in only one session. This is the longest streak for Nifty in the history of the index.
Rupak De, Senior Technical Analyst at LKP Securities feels there are chances of recovery in the short term.
"The index found support around 22,000 on a sustained basis. Though sentiment has not turned positive, there are signs that the index is finding support in the 21,800–22,000 zone. In the short term, we might witness a recovery. However, a decisive fall below 21,800 could change the current equation," said De.
In the current session, Sensex fell 96 pts to 72,989 and Nifty slipped 36 pts to 22,082.
Stocks such as Bajaj Finserv, HCL Technologies, Nestle India, Asian Paints, Bharti Airtel, Sun Pharma, Infosys, Maruti and Titan were the top losers on Sensex, falling up to 2.70%. Of 30 Sensex stocks, 18 ended in the red.
However, BSE midcap index rose 32 pts to 38,721. BSE small cap stock index too climbed 546 pts to 43,325 level, indicating recovery in the broader market.
Ajit Mishra – SVP, Research, Religare Broking advises traders to remain cautious on Nifty. "Weak global cues continue to weigh on sentiment, but selective buying is limiting the downside. We maintain a cautious outlook on the index, with key support at the 21,800-22,000 zone. Among sectors, banking, financials, and metals are exhibiting relative strength, while others present a mixed trend. Traders should align their positions accordingly while managing risk with prudent position sizing," said Mishra.
Amid the ongoing correction, Sensex is down 6.59% and Nifty has lost 6.61% in 2025.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities also sees signs of recovery after ten sessions of fall. "A reasonable green candle was formed on the daily chart at the lows, which is indicating a formation of bullish meeting line type candle pattern (not a classical one). This is positive signal and further upside from here could confirm the short-term bottom reversal pattern. The selling momentum seems to have started to decrease near the psychological support of 22,000 mark. A sustainable move above the immediate hurdle of 22,260 could open further upside bounce in the market. Immediate support is placed at 21,950 levels," said Shetti.
Devarsh Vakil, Head of Prime Research, HDFC Securities said, "Nifty has been closing below its 5-day exponential moving average (DEMA) since February 6, 2025. Fourteen-day Relative Strength Index (RSI) for Nifty has dropped to 21, the lowest level since March 2020, indicating that the index is highly oversold. Nifty continues to be in a downtrend, where 21,750-21,800 could serve as a support level. On the upside, the 5 DEMA is positioned near 22,260, which could act as a resistance level."
Vinod Nair, Head of Research, Geojit Financial Services said, "The domestic market exhibited a recovery from today’s lows but remained in negative territory due to adverse global cues related to escalating global trade tensions. Nevertheless, the broader market outperformed, primarily driven by value buying opportunities in small-cap stocks. Currently domestic economic indicators are favourable while investors await clarity on global trades for a consistency in momentum."