Sensex, Nifty prediction for tomorrow: Levels and trading strategy - Will stock market bounce back after crash today?

Benchmark indices Sensex and Nifty tanked over 1 per cent on Tuesday, as IT stocks-led selloff spooked investor sentiment. Analysts said the prevailing uncertain and heightened volatility in the market may continue in the short term as attempt by the bulls to move indices higher may face selling pressure.  

BNP Paribas in its India strategy note said its team met 45 investors across in Hong Kong and Singapore and that compared with its November 2025 interactions, investors were slightly more receptive to Indian equities, as they acknowledged the positives including the improved earnings outlook, strength in high-frequency indicators and trade deals with the EU and the US. 

"However, they continue to see better opportunities elsewhere in the region (Korea, Taiwan and Japan). For now. India, with its reviving earnings growth and strong domestic flows, is seen as a hedge, if the global AI trade reverses, but investors saw no reason to rush in," said Kunal Vora, Head of India Equity Research.  

For the day, Sensex settled at 82,225.92, down 1,068.74 points or 1.28 per cent. Nifty fell to a low of 25,327.60, before recovering and closing at 25,424.65, still down 288.35 points or 1.12 per cent.

Nifty outlook

As far as Nifty technical charts go, momentum indicators signal mild weakness, with RSI hovering around the 45 zone and MACD still in negative territory, indicating the broader setup remains fragile unless a strong breakout emerges. Intraday price action suggests persistent selling on rallies, favoring a sell-on-rise approach until a clear directional move is confirmed, said Ponmudi R, CEO of Enrich Money.

Ajit Mishra, SVP for Research at Religare Broking Ltd said the 50-pack index slipped below the crucial 25,400 but buying in select heavyweight stocks during the final hours trimmed some of the losses. 

"Technically, the Nifty has once again retested the crucial support near the 25,400 zone, and a decisive break below this level could trigger the next leg of the decline towards 25,245, which coincides with the 200-Day EMA, followed by a major support area around 25,100, marked by a gap on the daily chart. On the upside, the 25,600–25,800 zone is likely to act as an immediate hurdle in case of any recovery," Mishra said. 

Amid the prevailing volatility and weak global cues, this analyst advised participants to remain selective, keeping position sizes light and focusing on relatively stronger pockets of the market.

Ponmudi R, CEO of Enrich Money said Nifty has been forming lower-high, lower-low structure, with every recovery attempt facing selling pressure. 

"The 25,500–25,600 zone remains a crucial resistance band; a decisive breakout above this area could trigger short covering toward 25,700, while a sustained move below 25,300 may intensify downside momentum toward 25,200 or lower. 
 

Sensex outlook

In the case of Sensex, Shrikant Chouhan, Head Equity Research at Kotak Securities said the intraday market texture is weak, but a fresh selloff is possible only if Sensex breaches the 200-day Simple Moving Average (SMA) at 82,000. 

"If the market manages to trade above this level, it could bounce back to 82,500-82,800. Conversely, if it falls below 82,000, it could slip to 81,700-81,500.