Nifty Climbs 0.7% Ahead of Market Reversal Potential

Market Outlook Reversal Expected Amid Positive Global Cues

The Indian stock market indices, Sensex and Nifty, are expected to snap their two-day losing streak as global cues turn positive and crude oil prices decline marginally. On Tuesday, the Nifty rose nearly 0.7 percent around 2 pm, signaling a firm start for the domestic benchmark indices on Wednesday.

The Sensex and Nifty had ended the last trading session of the 2025-26 fiscal year sharply lower on Monday due to weak investor sentiment triggered by the ongoing conflict in West Asia and rising crude prices. Weak Asian markets and continued foreign fund outflows also weighed on domestic equities.

Key Indices Performance

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The Sensex fell 1,635.67 points or 2.22 percent to close at 71,947.55, while the Nifty declined 488.20 points or 2.14 percent to settle at 22,331.40. The indices extended their losses for the second straight session, with the Sensex dropping 1,809.09 points or 2.45 percent to 71,774.13 during the day.

Analysts at various brokerage firms have provided their insights on the market trends. Hitesh Tailor, Research Analyst at Choice Equity Broking, noted that the Nifty is hovering near the oversold zone, with immediate support placed in the 22,150-22,200 range and resistance seen between 22,450 and 22,500. He also pointed out that the Relative Strength Index (RSI) stands at 32.01, indicating underlying weakness.

Rupak De, Senior Technical Analyst at LKP Securities, observed that the Nifty appears to be finding support just above the rising trendline on the daily chart, with a hidden positive divergence on the daily RSI indicating a possible recovery. He predicted a rebound from Wednesday, with 22,200 likely to act as a key support level.

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However, analysts at SAMCO Securities expressed a bearish view, citing weak momentum indicators and a lack of buying interest. They noted that the RSI is hovering near 30-32, suggesting continuation of bearish strength rather than a reversal.

Nandish Shah, Deputy Vice President at HDFC Securities, stated that the Nifty's short-term trend remains weak as it is trading below key moving averages and the March 23 swing low of 22,471. He identified 22,800 as the immediate hurdle on any recovery, while the 21,700-21,900 band is likely to act as support on the downside.

The Sensex has fallen 3,325.9 points or 4.41 percent in the last two sessions, while the Nifty has dropped 975.05 points or 4.18 percent. For the full 2025-26 financial year, the BSE benchmark declined 5,467.37 points or 7 percent, and the Nifty fell 1,187.95 points or 5 percent.