Markets Under Pressure: Sensex, Nifty Decline as Investors Await US CPI Data

Mumbai, Mar 11, 2026: Indian benchmark indices closed sharply lower on March 11th as mixed signals surrounding the US–Israel conflict with Iran left investors uncertain about the potential impact on global inflation and economic growth. Investors will be keenly watching the US CPI data due tonight. At the close, the Sensex fell 1,342.27 points (1.72%) to 76,863.71, while the Nifty dropped 394.75 points (1.63%) to settle at 23,866.85.

Meanwhile India VIX, the market’s volatility gauge, rose by 11% to 21, indicating expectations of heightened short-term market volatility. On the sectoral front, most indices ended in the red, with Pharma (+0.41%),  Energy (+0.28%) followed by healthcare (+0.14%) being sectors to post gains. Auto stocks led the decline with a fall of nearly 3%, followed by Financials (-2%) and Realty (-1%). In the broader market, the Nifty Midcap index declined 1.2%, while Small-cap indices fell 0.3%.

Nifty Outlook 

The index formed a sizable bearish candle with a lower high and a lower low signaling lack of follow through to previous sessions pullback with the index testing the key support area of 24,000-23,700. Key support is placed at 23,700-24,000 being the confluence of the 100 weeks EMA and trendline support joining low of CY23 and CY25. Index holding above the same will lead to consolidation in the range of 24,400-23,700. A breach below the current week low 23,700 will open further downside towards 23,300–23,200 levels in the coming sessions. Volatility is likely to remain elevated amid uncertain global cues, rising crude price and escalating geo-political tension.

Bank Nifty Outlook

Index formed a sizable bearish candle with a lower high and a lower low signaling lack of follow through to previous sessions pullback with the index falling below the 56,000 levels. Volatility is likely to remain elevated amid uncertain global cues, rising crude price and escalating geo-political tension. Index on Wednesday session reacted lower from near the 38.2% retracement of its previous decline (61680-55527) and the bearish gap area of 9th March 2026. Going ahead index to trade with downward bias and test the current week low of 55,250 levels. A breach below 55,200 levels will lead to extension of the decline towards 54,300-54,000 levels in the coming sessions.

Source Courtesy: Bajaj Broking

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