Nifty Under Pressure: SEBI Ras Advise Caution After Index Breaches Support Zones

Indian equity markets came under pressure this week, with SEBI-registered analysts highlighting a confluence of foreign outflows, rising geopolitical risks, and broad-based selling as reasons to remain cautious in the near term.

Varunkumar Patel pointed to heavy foreign institutional investor (FII) selling, with over ₹3,800 crore offloaded in the cash segment and a significant rise in net short positions in the derivatives market. 

Patel noted that reports of an Israeli strike on Iran, which were initially flagged as a possibility, were confirmed earlier today, escalating global uncertainty. 

He advised a“cautious, wait-and-watch approach” until the situation stabilizes.

Krishna Pathak pointed out that the Nifty 50 broke all key support levels during the session, hitting an intraday low of 24,473 before recovering to trade above 24,620.

Meanwhile, Front Wave Research, which had maintained a bullish stance in recent months, said that the market is now seeing a“decisive wave of selling across sectors.”

This has prompted the research firm to downgrade most indices on its dashboard to 'Neutral.' 

Front Wave Research clarified that this was not a breakdown, but a signal that the strong uptrend has cooled. 

With risk assets like gold and crude rising amid geopolitical uncertainty, the firm advised against fresh entries and emphasized capital preservation over opportunistic buying.

“This is not your classic 'buy the dip' moment,” the firm said.

Rajneesh Sharma urged investors to avoid panic and take a broader perspective, describing the current correction as part of a familiar geopolitical reaction pattern. 

He highlighted similarities to May, when markets recovered sharply following initial panic over India-Pakistan tensions.

“Markets hate uncertainty but recover quickly once clarity emerges,” Sharma said. 

He noted that the Nifty remains within a long-term rising channel and that the current pullback is approaching a historically strong support zone.

Sharma advised investors to stay disciplined with SIPs, focus on quality names, diversify across asset classes, and use the correction as an opportunity to accumulate fundamentally strong stocks.

On Stocktwits, retail sentiment was 'bearish' amid 'normal' message volume.

The stock has risen 3.8% so far in 2025.

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