Nifty Near Critical Support: SEBI RAs Warn Of Breakdown Below 25,460

Indian equity markets trended lower at noon on Wednesday, as investors continued to monitor the ongoing trade negotiations between India and the U.S. 

At 12:10 pm, the Nifty traded 46 points lower at 25,495, while the Sensex fell 146 points to 83,550. The broader markets underperformed, with the Nifty Smallcap index falling 0.3%.

Bajaj Finserv, Shriram Finance, IndusInd Bank, Bajaj Finance, and BEL were among the top Nifty losers. In sectors, PSU banks and real estate stocks led the decline, while metals and IT stocks gained. Infosys, Wipro, and Mphasis were among the top gainers, driven by the US Federal Reserve’s dovish signal. 

Analyst Kush Ghodasara highlighted that the Nifty is positioned at the critical level of 25,470, effectively standing at the edge of a cliff. Should the index trade and close below this level, it could signal trouble for the bulls, according to him. 

Ghodasara strongly advised traders to place a strict stop-loss on all longs at today’s low.

Meanwhile, Ashish Kyal noted that the Nifty did not deliver the 15-minute close above 25,600 and is now approaching the crucial 25,460 levels. He believes that a 15-minute close below this level could increase selling pressure, triggering a retracement to 25,380.

The market is currently lacking a clear trend, and Kyal advised traders to exercise caution. He noted that it will be important to see if the Nifty holds 25,460 on a closing basis.

Data on Stocktwits shows that retail sentiment remained ‘bullish’ on the Nifty. 

The Nifty index has gained nearly 8% year-to-date (YTD). 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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