Sensex, Nifty close lower for fourth session; can the market recover?

Sensex and Nifty ended lower for the fourth straight session on Wednesday amid high volatility in equities and weakening currency. Sensex fell 31 points to close at 85,106. Similarly, Nifty50 lost 46 points to end at 25,986. Wipro, Hindalco, and TCS emerged as the key outperformers on Nifty rising up to 1.61%, while Max Healthcare, Tata Consumer and Adani Enterprises came under sustained selling pressure falling up to 2.91%. 

Ajit Mishra – SVP, Research, Religare Broking said, "Although the Nifty slipped below the crucial short-term support of the 20-DEMA around 25950 level during the session, the closing-hour recovery helped it reclaim this level. The rebound in private banking heavyweights and continued strength in IT were encouraging, but their sustainability will be the key for any meaningful recovery; otherwise, the corrective phase may extend. Meanwhile, participants should manage position sizes prudently and maintain a selective approach—favouring IT and pharma for long trades while considering opportunities in rate-sensitive pockets on dips."

Hitesh Tailor, Research Analyst, Choice Equity Broking said, "From a technical perspective, the Nifty now holds immediate support in the 25,800–25,850 range. Resistance is expected around 26,100–26,150, where selling pressure may re-emerge unless a strong recovery builds. Volatility stayed subdued, with India VIX remaining low, indicating that despite the decline, the market is still in a consolidation phase rather than entering a high-volatility correction."

The Nifty sectoral indices closed on a mixed note with PSU bank and auto stocks witnessing the sharpest fall. Private bank, pharma and media stocks ended higher on Wednesday.

Foreign institutional investors remained net sellers in the capital markets as they offloaded shares worth Rs 2,298.08 crore on Tuesday, as per exchange data.

Previous Session

The stock market ended lower on Tuesday. Sensex closed 64.77 points or 0.08 per cent lower at 85,641.90 and Nifty fell 27.20 points to close at 26,175.75.