On Tuesday, the stock market plunged due to a weaker-than-expected win for the BJP-NDA alliance, raising concerns about slower policymaking and a shift towards welfare programs. The Nifty dropped 1,268 points, and the Sensex fell by 4,390 points.
Sector-wise, only FMCG stayed positive while PSU Bank and Energy indices dropped significantly by 14.50% and 11.8%, respectively.
Key Nifty Levels for Wednesday
Nandish Shah from HDFC Securities suggests that Nifty might fluctuate between 21,710 to 22,417 in the near term. Traders should watch these levels closely as the market digests the election results.
Technical Insights
Shrikant Chouhan from Kotak Securities highlights that the market fell sharply below its 20-day Simple Moving Average (SMA) of 22,500, causing increased selling pressure. Key resistance levels are at 22,400-22,500, while support is seen at 21,600-21,300.
Ruchit Jain from 5paisa.com advises traders to wait for the volatility to settle, noting immediate support at 21,280 and resistance between 22,400-22,600.
Derivative Market Insights
Avdhut Bagkar from StoxBox points out a build-up of short positions, with significant resistance expected at 23,000-23,500. Immediate support is seen at 21,000, indicating a cautious approach for traders.
Expert Advice
Experts recommend traders avoid aggressive positions and wait for clearer market trends. Staying mildly bullish above the 200-day moving average (DMA) at 21,095 and considering positions if Nifty crosses 22,500 with strong volumes is advised.
In summary, due to the current market volatility and uncertainty, traders should exercise caution in the upcoming sessions.
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