The Indian equity markets ended lower on Wednesday, tracking mixed global cues as investor sentiment remained cautious ahead of the anticipated U.S.–India trade deal. Market participants largely stayed in wait-and-watch mode, closely monitoring global developments as the U.S. nears the end of its 90-day tariff deadline next week, adding to the uncertainty.

The BSE Sensex ended the day’s trade at 83,409.69, down 287.6 points, or 0.34%, and the NSE Nifty50 fell 88.45 points, or 0.35%, to close at 25,453.4. The broader market also witnessed profit booking, with the Nifty Midcap100 and the Nifty Smallcap100 indices falling 0.14% and 0.41%, respectively. The market capitalisation of all listed companies on the BSE declined to ₹460.81 lakh crore.

Of the BSE Sensex pack, 16 of the 30 stocks closed in negative terrain. The Top 5 losers on the Sensex were Bajaj Finserv, L&T, Bajaj Finance, HDFC Bank, and Bharat Electronics, falling in the range of 2.1% to 1.23%. On the other hand, Tata Steel, Asian Paints, Ultratech Cement, Trent, and Maruti Suzuki India were the Top 5 gainers, rising by up to 3.7%.

Among sectors, Nifty realty, financial services, bank, oil & gas, and media witnessed selling pressure, while metal, consumer durables, auto, IT, pharma and healthcare saw some buying.

The market breadth was negative, with 2,205 of the 4,171 stocks traded on the BSE closing in the red zone, while 1,809 ended higher, and 157 remaining unchanged. As many as 145 stocks hit their 52-week highs, while 51 slipped to their 52-week lows.

In the derivatives segment, the market breadth remained negative with 98 stocks advancing and 130 declining. Notable open interest spurts were observed in PG Electroplast, Blue Star, Tata Communications, CG Power, and Balkrishna Industries, suggesting heightened trader interest in these counters, said Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity.

Recent pause reflects caution, say analysts

While the global markets continue to display strength, the recent pause in the Nifty reflects caution, as participants await fresh triggers to resume the uptrend, said Ajit Mishra, SVP-Research, Religare Broking.

He recommended maintaining a positive bias while focussng on stock selection, especially in sectors showing relative outperformance, with an eye on the risk-to-reward ratio.

"Mixed global cues, particularly ahead of the impending tariff deadline, are driving investor caution. Market attention is gradually shifting to crucial Q1 earnings, which have high expectations,” said Vinod Nair, Head of Research, Geojit Investments.

“Underlying trends such as robust macroeconomic fundamentals and increased government expenditure continue to support market resilience. However, being at the breach level of the recent rally, a cautiousness is expected to continue in the near term," he said.

Nifty faces immediate resistance at 25,500

After rallying nearly 5% in recent weeks, the Nifty has witnessed a mild pullback over the past few sessions, bringing it closer to the 38.20% retracement of the prior upmove, around the 25,300 mark, said Rupak De, Senior Technical Analyst at LKP Securities. 

“On the upside, immediate resistance is placed at 25,500. A sustained move above this level could pave the way for a short-term recovery, potentially pushing the index towards 25,600 or higher. Conversely, a decisive break below 25,300 may open the door for a sharper correction," he said.

For the Nifty, key positional support lies at 25,200–25,100 levels being the confluence of the 20-day EMA and the upper boundary of the recent consolidation breakout area (25,200-24,500), said Bajaj Broking. The range is expected to act as a support level, showcasing the change of polarity, where previous resistance turns into support.

For Bank Nifty, structural support is placed to the 56,000–55,500 region, representing a confluence of key technical indicators—including the 50-day EMA and the 61.8% Fibonacci retracement of the recent rally (55,149-57,614), the brokerage said in a note.

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