25,000 seen as key support as Nifty holds 25,050; Bank Nifty below 55,000 may trigger further slide towards 54,500

Sensex fell 386.47 points or 0.47 percent to close at 81,715.63. During the day, it dropped 494.26 points or 0.6 percent to 81,607.84. The Nifty shed 112.60 points or 0.45 percent to settle at 25,056.90.

The equity benchmarks Sensex and Nifty declined for the fourth straight session on Wednesday, weighed by profit-taking in banking, auto and capital goods shares, coupled with persistent foreign fund outflows and concerns over higher US H-1B visa fees.

Sensex fell 386.47 points or 0.47 percent to close at 81,715.63. During the day, it dropped 494.26 points or 0.6 percent to 81,607.84. The Nifty shed 112.60 points or 0.45 percent to settle at 25,056.90.

Among sectors, CPSE and FMCG indices were the only gainers, rising around 0.20 percent each. Realty and capital market shares ended as the top laggards. Power Grid and Hindustan Unilever emerged as the biggest gainers, while Tata Motors and Bharat Electronics were the top losers.

In the broader market, both midcap and smallcap gauges underperformed the benchmarks. The Nifty Midcap 100 fell 0.98 percent, while the Nifty Smallcap 100 ended 0.67 percent lower.

Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities, said the Nifty formed a doji candle with minor shadows on both sides, indicating indecision after the recent pullback. The index, however, found support near the 25,045–25,050 zone, which coincides with the 38.2 per cent Fibonacci retracement of its earlier rally and the 20-day exponential moving average (EMA).

"Nifty continues to hold above its 20, 50, 100 and 200-day EMAs, keeping the broader uptrend intact. The 25,050–25,000 zone will act as immediate support, while a sustained move below 25,000 may open downside towards 24,800. On the upside, resistance is placed at 25,150–25,200, and a breakout above this range could resume the uptrend," Shah noted.

On the Nifty bank, Shah said the Bank Nifty slipped 0.7 percent to close at 55,122, breaking below its 50-day EMA of 55,190–55,200 which had earlier acted as support.

"The 55,100–55,000 zone will be crucial in the near term. A breach below 55,000 may drag the index towards 54,500. Resistance is seen at 55,500–55,600, and sustained buying above this zone could revive momentum," he added.

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