The Indian stock market opened sharply lower on Tuesday, weighed down by selling across the board amid weak global cues. The benchmark indices, Sensex and Nifty 50, opened with a gap-down, extending losses for the second consecutive session amid renewed concerns over additional US tariffs on Indian goods, persistent FPI outflows, and the absence of fresh triggers for a rally that have resulted in fatigue among investors.
The Sensex crashed 702.72 points, or 0.83%, to 84,399.97, while the Nifty 50 was trading 227.70 points, or 0.88%, lower at 25,732.85. Bank Nifty index declined 329.10 points, or 0.56%, to 58,909.45. Broader markets also reeled under heavy selling pressure, with the Nifty Smallcap 100 and the Nifty Midcap 100 indices falling 1.5% each.
On December 9, Tuesday, its weekly derivatives expiry day, the benchmark Nifty 50 slipped below the critical support zone 25,800 level, which has been serving as a key short-term demand base. Analysts believe a decisive break-down below 25,800 would weaken the broader upward structure and may accelerate selling pressure, dragging the index toward the 25,500 zone.
Key technical levels for Nifty 50
Nifty 50 witnessed profit booking and long unwinding in the past two sessions, while fresh call writing around 25,900 indicates emerging short positioning at higher levels. In the previous session, by closing below its prior swing low of 25,986, Nifty 50 confirmed a lower bottom following a lower top, reinforcing the short-term corrective structure.
“Immediate resistance is now placed at 25,950 – 26,000, and only a sustained breakout above this zone can revive upside momentum toward 26,200 – 26,350. Failing this, sellers are likely to remain in control. On the downside, a second decisive break below 25,800 could accelerate the corrective phase toward the 25,700 – 25,600 zone,” said Ponmudi R, CEO of Enrich Money.
Anshul Jain, Head of Research at Lakshmishree Investments believes that the Nifty 50 is in a clear long liquidation phase and is drifting toward the quarterly VWAP at 25,720, which aligns with an open gap at 25,715 that is likely to be fully filled.
“This confluence forms a strong support pocket where a sharp intraday rebound can emerge, especially in the second half as weekly expiry flows kick in. The structure remains weak for now, but the Nifty Bank divergence hints at a potential mean reversion bounce once selling pressure exhausts,” said Jain.
He advises traders to watch price behavior tightly around 25,720 to gauge whether the Nifty 50 index stabilizes for a staged recovery or slips into deeper volatility.
Bank Nifty Technical View
Bank Nifty opened 0.52% lower at 58,918.85 on Tuesday, below its immediate support region of 59,000 zone. The index hit an intraday low of 58,878.45.
“Bank Nifty index is currently in a breathing phase, deciding between a pullback bounce or short-covering toward the 59,200 – 59,400 range. The rising slope support is now placed near 58,900, and a break below this level could open the next downside toward 58,650, a level from where the index has previously taken support,” said Ponmudi R.
Despite yesterday’s red candle, Ponmudi R believes the broader structure remains intact, and directional clarity is expected only on a breakout from this range, especially amid mixed global cues.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
