Indian benchmark indices plunged over 2% on Wednesday, with the Sensex crashing 1,677.12 points and the Nifty settling below the 24,000 mark, as escalating geopolitical tensions between the US and Iran triggered broad-based risk aversion across the market.
Sharp Decline in Benchmark Indices
The Nifty 50 declined 2.12% or 516.65 points to close at 23,882.05, while the Sensex fell 2.15% or 1,677.12 points to end at 76,503.60, according to Bajaj Broking Market Commentary. The indices opened weak and extended losses throughout the session, with selling pressure intensifying in the second half after fresh geopolitical escalation.
The Nifty slipped below key near-term support levels and closed near its day's low, reflecting a sharp deterioration in market sentiment. The index formed a sizable bearish candle with a lower high and lower low and a bearish gap above its head (24,348-24,300). It gave up its entire recent gains to close around the 23,850 levels amid renewed US-Iran tensions.
Sectoral and Broader Market Impact
All major sectoral indices ended in negative territory. Nifty FMCG and Private Banks emerged as the biggest laggards, witnessing significant selling pressure. Although Nifty Metal outperformed relative to other sectors, it too ended the session in the red as widespread selling prevailed across the market.
The broader market also saw heavy selling. The Nifty Midcap 100 index declined 1.55%, while the Nifty Smallcap 100 index fell 2.24%, indicating sharper weakness in the broader market and heightened risk-off sentiment among investors.
Technical Outlook and Key Levels
During intraday trade, the index breached the support area of 24,250 in the morning and dragged sharply lower in the second half to test the key support level of 23,800. Going ahead, a breach below the 23,800 support area will open further downside towards the 23,500-23,600 levels in the coming sessions, which is the confluence of the previous gap area and 61.8% retracement of the entire previous up move (23,070-24,530).
While holding above 23,800 will lead to consolidation in the range of 23,800-24,350. Immediate bias remains down below Wednesday’s gap-down area of 24,350.
