After sharp sell-off on Tuesday, all eyes on Nifty’s next move as key support levels face pressure

After a promising start, the stock market experienced sharp profit booking on Tuesday, causing benchmark indices to decline significantly. The Nifty closed with a loss of 174 points, while

the Sensex fell by 636 points. Weakness in banking stocks, particularly private lenders, led the decline. However, pockets of resilience were visible in real estate and defence counters,

which bucked the trend and posted gains.

Shrikant Chouhan, head–equity research at Kotak Securities, said, “The benchmark indices experienced profit booking at higher levels, with the Nifty closing 174 points lower, while the

Sensex dropped by 636 points.”

“Among the sectors, the private bank index was the biggest loser, declining by 1.25%. Despite the weak market sentiment, the real estate and defence indices outperformed, each rallying by

over 1%,” said Chouhan.

“Technically, after a positive opening, the market fell below the 20-day Simple Moving Average (SMA) of 24,700, leading to intensified selling pressure. Daily charts show that a long bearish

candle has formed, and intraday charts indicate a lower top formation, which is negative,” said Chouhan.

“We believe that the intraday market trend is weak, but a fresh sell-off may only occur if the index breaches the level of 24,450. If this level is broken, the index could decline to between

24,350 and 24,300,” Chouhan added.

“On the upside, if the index rises above 24,650, a quick pullback rally toward the 20-day SMA of 24,700 could happen. Further upside potential may also exist, possibly lifting the market up

to 24,800,” he said.

With bearish signals emerging on both daily and intraday charts, traders are now watching the crucial 24,450 level on the Nifty today. A breakdown could open the door for a deeper

correction, while a bounce above 24,650 might trigger a short-term recovery. As technical patterns take shape, the next few sessions could be pivotal for market direction.

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