The NSE Nifty 50 is likely to trade with a bearish bias on Wednesday as the index struggles to recover after breaking below the key psychological support level of 23,000 in Tuesday’s session. 

Analysts peg immediate support at 22,800, which aligns with the long-term trendline, while resistance is seen at 23,140. Sustained selling pressure and global uncertainties can weigh on market sentiment.

The Nifty formed a large bearish candle and the negative momentum may extend further, especially as broader markets underperformed, with the MidCap and SmallCap losing over 2%, according to Aditya Gaggar, director of Progressive Share Brokers.

The decline can be attributed to persistent foreign-institutional-investor selling and weaker-than-expected third-quarter results, according to Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services Ltd.

“All sectors ended in the red, led by Nifty Realty’s 4% drop due to growth concerns and uncertainty over the RBI’s rate cut cycle. Investors will focus on heavyweight earnings, including HDFC Bank and HUL, scheduled tomorrow,” Khemka said.

Concerns over global developments, including Donald Trump’s tariff threats and expectations of a Bank of Japan rate hike on Friday, also contributed to the selling pressure, said analysts.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the 13th straight session on Tuesday and sold stocks worth Rs 5,920.3 crore.

Domestic institutional investors have been buyers for 24 consecutive sessions and bought stocks worth Rs 3,500.3 crore, according to provisional data from the National Stock Exchange.

Market Recap

The Indian benchmark indexes fell further on Tuesday, closing at their lowest level since the June crash, as investors were concerned about US President Donald Trump’s proposed trade tariffs. The rise in volatility coincides with the weekly expiry of the Sensex futures contracts.

The session fluctuated between gains and losses, falling more than 1.5%, led by a selloff in real estate and energy companies. Zomato fell 13%, while Dixon Technologies fell 14% during the day due to disappointing third-quarter earnings.

The S&P BSE Sensex closed 1,235.08 points or 1.6% down at 75,838.36, while the NSE Nifty 50 was 320.10 points or 1.37% lower at 23,024.65. Intraday, the NSE Nifty 50 declined 1.58% to 22,976.8, and the S&P BSE Sensex fell 1.86% to 75,641.8.

Major Stocks In News

  • Jio Financial Services: The company and BlackRock further subscribed to 5.85 crore shares of JV Jio BlackRock Asset Management for Rs 117 crore.

  • Railtel Corp: The telecom infrastructure provider received an order worth Rs 46 crore from North Western Railway.

  • Aditya Birla Fashion & Retail: The company closed its qualified institutional placement at Rs 271.3 per share issue price.

  • Vodafone Idea: The debt-ridden telecom company received a GST demand order worth Rs 8.9 crore, including interest, from the Mumbai government.

  • Zydus Lifesciences: The company’s arm received a demand order with a penalty of Rs 16.6 lakh for fiscal 2019 on an issue pertaining to alleged excess availment of ITC.

  • Vedanta: The company’s unit, Balco, received a GST demand order of Rs 22 lakh, including interest, from the Delhi government.

Global Cues 

Stocks in the Asia-Pacific region tracked overnight gains on Wall Street in hopes that President Donald Trump’s policies would boost the outlook for the world’s biggest economy.

Australia’s S&P/ASX 200 opened higher with the benchmark index advancing by 0.57%, or 48 points, to 8,451 as of 6:25 a.m. Japan’s Nikkei was up 505 points, or 1.29% at 39,529. Future contracts in China and Hong Kong hinted at a cautious start.

Stocks in China gained in Tuesday’s session as Trump held off from imposing trade tariffs in his inaugural speech but later said he is considering a 10% levy as early as Feb. 1.

Meanwhile, Trump pushed to make the US an AI superpower by having fewer guardrails by immediately halting the implementation of key safety and transparency requirements for AI developers.

US ten-year treasury yields advanced after falling five basis points in the previous session while the stocks added to their 2025 gains. The S&P 500 and the Dow Jones Industrial Average rose 0.88% and 1.24%, respectively. The tech-heavy Nasdaq Composite climbed 0.64%.

The largest cryptocurrency traded above the $105,000 mark. The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was down 0.02% at 108.04.

Crude oil prices were flat as Trump threatened a tariff on China. The Brent crude was trading 0.05% lower at $79.25 a barrel as of 7:00 a.m. IST, and the West Texas Intermediate was up 2.56% at $75.89. 

Money Market

On Tuesday, the Indian rupee shed two paise versus the US dollar to settle at 86.59, giving up its initial gains.

The currency opened higher against the greenback, following a more than 1% drop in the US dollar index following President Donald Trump’s inauguration speech, which contained fewer tariff-related statements.

According to Bloomberg statistics, the domestic currency increased by 28 paise to open at 86.29 against the dollar, up from Rs 86.57 at the close on Monday.

. Read more on Markets by NDTV Profit.Sustained selling pressure and global uncertainties can weigh on the market sentiment, say analysts.  Read MoreMarkets, Business, Notifications 

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