Stock market bottom: Is correction in Nifty 50, Sensex over or more pain left? Experts weigh in | Stock Market News

Indian indices ended its eight-session losing streak, driven by a robust rebound in banking stocks, on Monday. After dipping to early morning lows, the BSE Sensex climbed back to 76,000, while the Nifty crossed 22,900, driven by gains in the financial sector.

Amidst mixed global signals, Indian indices started on a weak note and saw continued selling pressure throughout the day. However, mid-session buying helped them rebound from the day’s low, ultimately closing slightly higher.

“Nifty opened gap down but managed to recover the loss as buying interest emerged at lower levels. It ended 30 points higher at 22,960 level (+0.1%) after 8 consecutive sessions of fall. Broader market indices too closed in the green with Nifty Midcap100 up 0.4% and Smallcap100 up marginally. Also, investor interest was seen in the consumer durables, metals, oil & gas and PSU Banking space. The overall market sentiment remains cautious amidst persistent FII selling, US trade tariff concerns and weak quarterly earnings. This Q3 earning season saw higher number of downgrades than upgrades. Weakness in consumption coupled with a drag from commodities has put pressure on earnings even though BFSI, Healthcare, Capital Goods and Technology have posted a healthy print,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

How’s market likely to open tomorrow?

According to Mandar Bhojane, Research Analyst, Choice Broking, the selling pressure in the market is likely to be eased, however, more correction or downside will depend on key levels.

“This price action, along with a bullish piercing pattern and significant volume, suggests that selling pressure might be easing. However, whether the correction is over or more downside remains depends on key levels and market sentiment,” Bhojane said.

Bhojane further added, “Technical indicators such as RSI (39.05) and Stochastic RSI near the oversold region point to a potential recovery, but a strong close above 23,200 is needed to confirm a bullish reversal. On the downside, if Nifty fails to sustain above 22,800, it could slip further toward 22,600 and 22,400.”

What should investors do?

Rajesh Bhosale, Technical Analyst, Angel One Ltd – Angel One says that strong support is evident at every 100-point interval, ranging from 22800–22700 (lower end of the wedge) to 22600–22500, which coincides with the 127% retracement of the early February rebound.

Bhosale further recommends investors to avoid panic selling, while refraining from taking new short positions.

“Given these factors, we do not anticipate significant downside risks, and the bulls may attempt a recovery in the near term. Therefore, we advise traders to avoid panic selling and refrain from initiating fresh short positions. Instead, any dips can be viewed as opportunities to accumulate quality names in a staggered manner. That said, while we don’t want to sound too gung-ho, we prefer to take one step at a time. Immediate resistance is placed at 23250, aligning with the 20-day EMA and the intraday high on the hourly chart, while the upper boundary of the Falling Wedge near 23400 remains a critical hurdle. Traders should closely monitor these levels and plan their trades accordingly,” Bhosale said.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.