There is no confidence among the bulls to stick their neck out and say that the recent bout of selling is done for good. Even after staying in the green for most parts of the trading session on Tuesday, the Nifty could not hold on to the highs, eventually ending in the negative in a session that was supposed to be one of a relief rally after Monday’s brutal selling.

It is not as if the global markets were any bad on Tuesday. The Japanese indices staged a recovery from Monday’s sell-off and even the US futures remained in the positive through the day. But geopolitical uncertainties, particularly with the situation developing in Bangladesh, along with the one in West Asia, and still no clarity on what the US Federal Reserve would eventually do, ensured that the intraday bounce got sold into.

Index	Fall From High	In %
Nifty	390 Points	-1.60%
Nifty Bank	940 Points	-1.86%
Nifty Midcap	1,486 Points	-2.60%
Nifty Smallcap	495 Points	-2.70%

The bigger worry though, comes from the broader markets. The Nifty may have not managed to close above the 24,000 mark, but still managed to hold on to Monday’s low and staged a marginal bounce from those levels. The same could not be said for either the Nifty Midcap or the Smallcap index. The Midcap index fell nearly 1,500 points from the highs of the day, it made a lower low on the charts and closed just 100 points above Monday’s low.

Same is the case for the Smallcap index, which made a low similar to Monday’s and closed just 40 points above those levels, after a 500-point drop from the session’s highs. The Nifty Financial Services’ weekly expiry too was at play in the second half of the session.

The US markets have opened in the positive, but the question remains, as to whether they too would be able to hold on to this rebound. A positive handover from Wall Street will give the bulls a lot of comfort at least till the Reserve Bank of India’s monetary policy decision on Thursday.

Gujarat Gas, Tata Power, Lupin, PI Industries, Cummins India, VIP Industries, JM Financial, PB Fintech, Gland Pharma are some earnings reactions that will take place during Wednesday’s trading session.

Apollo Tyres, Godfrey Phillips, GCPL, Gokaldas Exports, Lemon Tree Hotels, Dr. Lal Pathlabs, Pidilite Industries, Radico Khaitan, Talbros Automotive are some companies reporting earnings on Wednesday.

After selling over a billion dollars on Monday, foreign institutions continued to remain net sellers in the cash market, while domestic institutions continued to cancel them out with net buying.

Technically, there are no signs of the Nifty forming a strong support base, said Ruchit Jain of 5paisa.com. He said that the Nifty needs to surpass 24,300 – 24,350 on the upside for any strong pullback, else the Nifty may continue to see a downward move towards 23,630, which is a 38.2% retracement of the upmove from the June 4 lows.

Rajesh Bhosale of Angel One said that the Nifty has immediate support between 23,900 – 23,850 levels, a slip below which can take the index further down to 23,600 – 23,550 levels. He advises using any bounce like Tuesday’s as a selling opportunity. 24,250, followed by 24,350 – 24,400 are immediate hurdles for the index.

Kotak Securities’ Shrikant Chouhan said that the immediate support for the Nifty is at 23,900 and a fall below that can take the index down to 23,700 – 23,600 levels, where it has support from retracements and long-term averages. He advises selective buying in case the index falls to those levels. 24,150 and 24,400 are hurdles for the Nifty.

Similar to the Nifty Midcap and the Nifty Smallcap index, the Nifty Bank too made a low below Monday’s and closed just a few points above those levels. Unlike Monday, it could not hold on to the 50,000 mark either, seeing a 1,000-point drop from the highs of the session. The last three sessions has seen the index shed over 1,800 points. Wednesday will also be the weekly options expiry of the Nifty Bank, which will continue to keep the index in the spotlight.

The Nifty Bank has formed a bearish candle with a large body and is hovering around the 50% Fibonacci retracement level around 49,700 and a slip below that can push the index further down to 49,200 – 49,100 levels, said OM Mehra of SAMCO Securities. To regain the upward momentum, the Nifty Bank needs to close above the 50,450 mark.

Hrishikesh Yedve of Asit C Mehta Investment Interrmediates said that the Nifty Bank tried crossing the previous breakdown point on Tuesday but failed to sustain above it. Therefore, 50,400 – 50,600 will be a major resistance for the index, while 49,500 – 49,000 will be a short-term support.

What Are The F&O Cues Indicating?

These stocks saw fresh long positions on Tuesday, meaning an increase in both price and Open Interest:

Stock	Price Change	OI Change
Torrent Pharma	0.96%	8.71%
Deepak Nitrite	1.51%	7.42%
PI Industries	1.38%	4.63%
IPCA Labs	2.03%	4.40%
Aarti Industries	1.81%	4.32%

Fresh short positions were seen in these stocks on Tuesday, meaning an increase in Open Interest but a decline in price:

Stock	Price Change	OI Change
TVS Motor	-0.54%	8.71%
GCPL	-0.23%	8.56%
Dr. Lal Pathlabs	-0.33%	7.13%
LIC Housing	-4.91%	6.94%
Marico	-6.06%	5.16%

Unwinding of long positions was seen in these stocks on Tuesday, meaning a decline in both price and Open Interest:

Stock	Price Change	OI Change
Shree Cement	-2.78%	-8.63%
Ashok Leyland	-0.27%	-5.55%
Hindustan Copper	-2.34%	-5.34%
Chambal Fertilisers	-0.62%	-5.32%
India Cements	-0.92%	-5.09%

These are the stocks to watch out for ahead of Wednesday’s trading session:

• Cummins India: Net profit up 33% to ₹419.8 crore, in-line with CNBC-TV18 poll of ₹424.2 crore. Revenue up 4.3% to ₹2,304 crore, below estimates of ₹2,421.9 crore. EBITDA at ₹467.4 crore meets estimmates and up 37.2% from last year. EBITDA margin at 20.3% from 15.4% last year and higher than the 19.2% estimate. Exports down 22% year-on-year to ₹389 crore but 13% higher sequentially. Domestic revenue driven by demand from all segments, particularly from industrials sector. Powergen revenue expectedly soft considering the sunsetting of CPCB-II norms. Powergen has seen a switchover to CPCB IV+ norms.
• Bata India: Net profit up 62.9% to ₹174 crore. Revenue down 1.4% to ₹944.6 crore. EBITDA down 22.7% to ₹184.9 crore. EBITDA margin at 19.6% from 25% last year. Sluggish consumption environment further accelerated by elections and extreme heatwave. Maintained gross margins in the face of sluggish consumption momentum during the quarter. Profit also aided by a one-time gain on sale of property worth ₹134 crore. Interim dividend of ₹10 per share declared. Significant growth in digital sales over the previous quarter. Portfolio casualisation continues to work well. Added 33 franchise stores in the quarter, particularly in tier-3 to tier-5 towns.
• PI Industries: Net profit of ₹448.8 crore, higher than estimates of ₹408.4 crore and up 17.2% from last year. Revenue at ₹2,068 crore, marginally lower than the ₹2,145 crore estimate. EBITDA at ₹583.2 crore, higher than expectations of ₹518 crore. EBITDA margin also 400 basis points higher than estimates at 28.2%, up 370 basis points year-on-year.
• Gujarat Gas: Net profit of ₹329.8 crore slightly higher than estimate of ₹317 crore. Net profit down 19.5% year-on-year. Revenue up 7.5% to ₹4,450.3 crore, higher than estimates of ₹4,294 crore. EBITDA down 4.2% to ₹535.6 crore, lower than estimate of ₹591 crore. EBITDA margin down 100 basis points to 12% from 13% last year and below estimates of 13.7%. Achieved highest ever CNG volume of 2.98 mmscmd in the quarter. Total volumes up 19% year-on-year. CNG category continues to witness strong momentum. Added more than 37,400 new domestic customers. Signed volumes of 6,30,000 scmd which will be commissioned in the next few days.
• VIP Industries: Net profit down 93.1% to ₹4 crore from ₹57.8 crore last year. Revenue flat at ₹638.9 crore. EBITDA down 38.7% to ₹49.4 crore while margin narrows by 500 basis points to 7.7% from 12.7% last year.
• Chambal Fertilisers: Net profit up 32.4% to ₹448.3 crore. Revenue down 11.7% to ₹4,933.2 crore. EBITDA uyp 18.7% to ₹751.9 crore. EBITDA margin at 15.2% from 11.3% last year. Company is now a zero-debt company after pre-payment of loans worth ₹1,785 crore. Introduced eight new products in the crop protection business. Crop Protection revenue up 16% to ₹343 crore. Technical Ammonium Nitrate project progressing as planned. P&K Fertiliser revenue lower due to lower DAP volumes.