However, the rebound proved short-lived as the index failed to hold on to higher levels and slipped into renewed weakness in the mid to late hours of trade.
The Nifty eventually breached its recent consolidation support, adding to the negative sentiment amid continued concerns around developments in the Strait of Hormuz.
Despite intermittent volatility through the session, selling pressure remained dominant at higher levels. As a result, the market was unable to sustain the intraday recovery and the Nifty ended lower for the second straight session, closing below the 23,650 mark.
Among index heavyweights, Coal India and NTPC emerged as the top gainers, displaying resilience despite the broader market weakness. In contrast, Mahindra & Mahindra and Eicher Motors were the major laggards and weighed on the index.
On the sectoral front, the Nifty Auto, Nifty Private Bank, and Nifty FMCG indices were among the worst performers. Meanwhile, the Nifty Metal and Nifty Chemical indices bucked the broader trend and closed the session in positive territory.
Broader markets fared relatively better than the frontline indices. Although both the Nifty Midcap 100 and Nifty Smallcap 100 indices ended the day in the red, they witnessed notable buying interest after slipping to their respective intraday lows.
On the macroeconomic front, India’s retail inflation rose to 3.2% in February. The price index has now increased sequentially for the fourth straight month, signalling a gradual firming in price pressures.
According to Nagaraj Shetti of HDFC Securities, the underlying trend of the Nifty remains weak. However, the broader chart structure indicates the possibility of a lower bottom formation near the 23,500 to 23,400 support zone in the near term.
A sustained move above the 23,850 level could signal a potential upside reversal, he added.
Rupak De of LKP Securities said the short-term sentiment continues to favour a bearish bias, with sell-on-rise likely to remain the preferred strategy.
He sees immediate support at 23,400 and 23,200, while resistance is placed around the 23,850 level.
Meanwhile, Sudeep Shah of SBI Securities noted that the 23,550 to 23,500 range will act as a crucial support zone for the index. A decisive break below 23,500 could extend the decline towards 23,350.
On the upside, the 23,800 to 23,850 band remains an immediate resistance zone, and a breakout above 23,850 may trigger a pullback rally towards the 23,970 to 24,000 levels.
