Domestic equity markets in India experienced renewed selling pressure during Wednesday's morning session as global market signals weakened significantly. This downturn was primarily driven by escalating tensions in the Middle East region and substantial declines in major technology stocks across United States markets.
Market Opening Performance
The benchmark indices began trading on a negative note, reflecting heightened caution among investors amid global volatility. The Nifty 50 index commenced at 25,675.05, registering a decline of 52.50 points or 0.20 percent from the previous close. Meanwhile, the BSE Sensex opened at 83,252.06, showing a more pronounced drop of 487.07 points or 0.58 percent.
Market analysts have identified increased global volatility as the primary factor behind this sluggish market opening. The combination of geopolitical uncertainties and weakness in international technology sectors has created a risk-averse environment for investors.
Technical Analysis and Outlook
Nifty 50 Perspective
According to Sagar Doshi, Senior Vice President-Research at Nuvama Professional Clients Group, the Nifty 50 has experienced significant volatility since the beginning of January 2026. The India VIX volatility index has witnessed an impressive gain of over 80 percent since January 1, 2026.
Doshi notes that large gap-up openings have failed to sustain, suggesting that the gap between last week's highs and yesterday's low will likely be filled sooner this month. However, this gap should be utilized to create long positions, with support expected at the rising 200-day moving average. The analyst projects potential targets of 25,940 and 26,100 for the index.
Bank Nifty Analysis
The Bank Nifty has already accomplished what analysts anticipate for the Nifty 50, having tested its previous week's highs during yesterday's volatile trading session. Breaking yesterday's low and reversing near 59,700 could present an opportunity to establish fresh long positions on the index.
This assessment is based on Bank Nifty experiencing 59,650 as significant resistance over the past nine weeks of trading. According to classical technical analysis principles, this level is now expected to function as support for the index.
Recommended Stocks for Wednesday Trading
Sagar Doshi of Nuvama has recommended three specific stocks for consideration on Wednesday:
Petronet LNG Ltd (BUY)
Last Closing Price: ₹297
Stop Loss: ₹287
Target: ₹324
Following its initial breakout from a 15-month sloping trendline, Petronet LNG had been awaiting catalysts while trading within a 6-8 percent band. With the 200-day moving average now reclaimed as support and the stock closing at six-month highs, momentum buyers could potentially enter the market. This setup suggests an 8-10 percent rally may unfold.
Mangalore Refinery and Petrochemicals Ltd (MRPL) (BUY)
Last Closing Price: ₹179
Stop Loss: ₹171
Target: ₹195
MRPL has demonstrated remarkable recovery of over 30 percent during the last nine trading sessions, following its reversal from 200-day moving average support. Weekly charts reveal a repetitive higher low formation pattern. The stock stands on the verge of closing at 16-month highs on weekly charts if it maintains current market price levels until Friday's close, which would also signal the conclusion of the stock's two-year corrective phase.
CCL Products (India) Ltd (BUY)
Last Closing Price: ₹981
Stop Loss: ₹944
Target: ₹1,066
CCL has been consolidating with negative bias for the past twelve weeks, correcting over 15 percent from its all-time highs. The stock has exhibited lower high formations since the beginning of this calendar year, but this week's trendline breakout from this consolidation suggests the beginning of a fresh upward movement that could potentially return prices to previous highs.
Disclaimer: The views and recommendations presented above represent those of individual analysts, experts, and broking companies, not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
