The Nifty 50 ended Tuesday’s session marginally lower at 22,750. Markets now look toward Wednesday for fresh triggers, including the US Fed decision and the Jio Platforms listing. Nagaraj Shetti of HDFC Securities said, "The underlying market trend remains positive and expects the Nifty to eventually break above 22,800."
The Nifty 50 ended Tuesday's monthly expiry session marginally lower at around 22,750, as selling pressure near the 22,800-resistance level offset buying interest at lower levels.
The benchmark opened on a mildly negative note, tracking cues from GIFT Nifty, before recovering during the first half of the session. However, a sharp mid-session decline wiped out the initial gains, with a late recovery helping the index pare losses towards the close.
After rebounding from its intraday lows on Monday, the index appeared to consolidate around a key resistance level, leaving the near-term outlook range-bound to mildly positive.
Information technology (IT) stocks witnessed profit booking, while financial stocks remained under pressure. Capital market stocks extended their gains amid reports concerning potential changes to long-term capital gains (LTCG) tax and securities transaction tax (STT), with BSE rising more than 2%.
Tata Consumer Products emerged as the top Nifty 50 gainer, climbing nearly 7% after its September-quarter results largely met market expectations.
Nifty outlook: Can the index cross 22,800?
Market participants will look for fresh triggers on Wednesday, with the Federal Reserve's policy decision and commentary, corporate earnings and the proposed listing of Jio Platforms in focus. Jio Platforms is slated to list on the exchanges on Wednesday, following a fresh issue of ₹30,213 crore, according to the supplied details.
The domestic earnings calendar will also remain busy, with results due from Hindustan Unilever, Adani Ports, Adani Enterprises, TVS Motor, Hyundai Motor India, Pidilite Industries, Vedanta, Cholamandalam Investment and Finance, Hero MotoCorp and JSW Energy, among others.
Nagaraj Shetti of HDFC Securities believes the underlying market trend remains positive and expects the Nifty to eventually break above 22,800 in the short term. A decisive move beyond this level could pave the way for an advance towards 23,100, while declines may find support near 22,600.
Osho Krishan of Angel One sees the 22,500–22,600 zone as an important support area that could cushion the index against further selling. On the upside, 22,850 is an intermediate hurdle, while 23,000 remains a stronger resistance level. A sustained breakout above these levels would be needed to strengthen the technical outlook.
Vatsal Bhuva of LKP Securities noted that the Nifty managed to close above its 20-day moving average (DMA) and 200-week moving average (WMA) on the daily chart after briefly slipping below them. This points to buying support at lower levels, although selling pressure continues near 22,800.
Bhuva expects the index to remain sideways to mildly positive in the near term, with 22,600 acting as immediate support and 22,800 as the key resistance. A sustained move above the latter could open the way towards 23,000. He advised traders to follow a level-based strategy.
Sunny Agrawal of SBI Securities said corporate earnings, commodity price movements and global macroeconomic developments will be important in determining the market’s next move. He added that, despite near-term volatility, domestic fundamentals and India’s long-term growth prospects continue to support the broader investment outlook.