Stock market today: Following weak global cues, the Indian stock market ended lower for the third straight session. The Nifty 50 index, which represents the performance of the 50 largest and most liquid Indian companies, went down 44 points and closed at 22,888, whereas the BSE Sensex, which is a benchmark index of the Bombay Stock Exchange, shed 220 points and closed at 75,170. The Bank Nifty index, which represents the performance of the banking sector, lost 139 points and finished at 49,142. Cash market volumes on the NSE, which is the National Stock Exchange of India, fell nearly 16 percent compared to the previous day. The broad market indices fell more than the Nifty, even as the advance-decline ratio, which measures the number of advancing stocks to the number of declining stocks, dropped sharply to 0.4:1, indicating a bearish market sentiment.”

Trade setup for Wednesday

Providing his expert analysis on the Nifty 50 index, Osho Krishan, a seasoned Sr. Analyst in Technical & Derivative Research at Angel One, stated, “From a technical standpoint, there has been a subtle shift in the price chart for Nifty, but the recent small-bodied candlestick formations clearly indicated the exhaustion of the bullish strength and could trigger a price-wise correction post-rally. In terms of levels, 22800-22700 is likely to be seen as immediate support. Conversely, 23000 poses a significant hurdle, followed by the lifetime high zone around 23100.”

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On the outlook for Bank Nifty today, Om Mehra, Technical Analyst at SAMCO Securities, said, “Bank Nifty halted its gaining streak, ending the session at 49,142.15, down 0.28%. The appearance of a shooting star on the daily chart in the previous session suggests higher-level resistance. A break below the immediate support level of 49,100 could push the index towards 48,800. For the uptrend to resume, Bank Nifty must decisively break above the 49,400 mark.”

When asked about the outlook of the Indian stock market today, Siddhartha Khemka, the Head of Retail Research at Motilal Oswal, expressed, “We anticipate Nifty to maintain a sideways to marginally positive trend, buoyed by reduced FII selling, predictions of above-normal monsoon, and the last leg of Q4 results. These factors could potentially open up profitable opportunities for investors.”

Expecting the volatility to continue further on Dalal Street, Rahul Ghose, CEO of Hedged.in said, “The rise in India VIX after forming the day low at 22.03 gradually increased to test the day’s high at 24.48 and likely to close around the high, build pressure on Nifty on the upside, which traded, below the opening range 22957 to 22992, most of the day. The bearish OI build-up in 23000 Calls indicates that 23000 shall be a hurdle for Nifty to cross in the last expiry week of the May series.”