Market view for Wednesday: Nifty Struggles to Hold Gains; Southward Shift Toward 24,000 Likely
Mumbai, May 21:
The Indian stock market witnessed a profit booking from Monday as this week as the benchmark Nifty 50 index failed to sustain near high levels made on last Thursday, the index made an attempt to breach the high of 25,126 but quickly lost momentum, ending the day lower at 24,945 on monday. The weakness deepened further on Tuesday, with Nifty closing at 24,683 — marking a significant decline and indicating increased bearish sentiment.
Market analysts believe that this sharp reversal from higher levels signals a likely shift in momentum. “The inability to hold gains near previous highs, followed by a consistent decline, suggests that the bulls are losing grip, and we may be heading for a corrective phase,” said a technical analyst from a leading brokerage firm.
Short-term charts indicate a bearish divergence, and momentum indicators are pointing toward increased selling pressure. If the index breaches key support levels in the next few sessions, a drop toward the 24,000 mark looks increasingly probable.
Investor caution is also visible across broader markets, with mid-cap and small-cap stocks witnessing selling pressure. Global cues, upcoming election results, and rising bond yields are among the factors contributing to the nervousness.
Traders are advised to remain cautious and watch for confirmation signals before taking aggressive positions. A decisive break below 24,600 could pave the way for further downside toward 24,000 in the coming days.