However, selling resumed in the final hour, dragging the index lower and extending its losing streak to the sixth consecutive session. The Nifty settled near the 24,150 mark, down 0.55%.
Technically, the Nifty slipped below its 50-day and 100-day EMAs on Tuesday and is now trading below all its key moving averages, indicating continued weakness.
Among Nifty constituents, Axis Bank and Max Healthcare emerged as the top gainers, while Asian Paints and Infosys were the biggest laggards. On the sectoral front, Nifty Healthcare and Nifty Auto outperformed, while Nifty IT and Nifty Realty witnessed the sharpest declines.
The broader market ended on a mixed note, with the Nifty Smallcap 100 outperforming the frontline indices.
Going forward, Indian equities are likely to remain under pressure as elevated crude oil prices, US-Iran tensions and weak global cues weigh on sentiment. With Brent crude rising above $90 a barrel and the reopening of the Strait of Hormuz remaining unresolved, oil prices will remain a key monitorable for the rupee, inflation and foreign flows.
Sudeep Shah of SBI Securities said the 24,030-24,000 zone is expected to act as a key support area for the Nifty, with the rising trendline of the upward-sloping channel positioned around these levels.
A decisive breakdown below the 24,000 mark could accelerate selling pressure and trigger a deeper correction towards 23,850, Shah said. On the upside, the 24,280-24,300 zone remains a crucial resistance area. As long as the Nifty trades below 24,300, the overall market bias is likely to remain bearish, he added.
“In terms of levels, 24,100-24,000 is an immediate and very important support band, whereas on the upside, immediate resistance is now likely to be found in the 24,250-24,300 band, followed by stronger resistance at 24,400,” said Hitesh Rathi of Angel One.
LKP Securities’ Rupak De said weakness persisted as the Nifty weekly options contracts expired. The index slipped below its 50-day EMA for the first time in many days, heightening bearishness.
Overall sentiment could favour the bears as the index continues to lose bullish momentum. On the downside, the fall could extend towards 24,050-24,000, where initial support is likely to emerge. On the upside, resistance is visible at 24,240, De said.
