Nifty Slips Below 24,000 on Broad Selling; Global Cues Offer Little Support
Indian equity benchmarks ended lower on Tuesday, with the Nifty 50 falling 278.80 points (1.16%) to close at 23,824.10, slipping below the key 24,000 level. The selling was broad-based, driven by weak domestic economic data and a global technology-led selloff.
The Flash Services PMI fell to a 17-month low, raising concerns about economic momentum. IT and metal stocks were hit hardest after Wall Street saw sharp declines overnight, led by weakness in semiconductor stocks amid AI valuation concerns and expectations of a relatively hawkish Federal Reserve.
Asian markets attempted to stabilise on Wednesday morning, and Brent crude hovered near $76 per barrel as easing geopolitical tensions and progress in US-Iran peace talks helped alleviate supply concerns. GIFT Nifty indicated a mildly positive start for the Indian market.
Technically, the Nifty remains in a cautious zone as long as it trades below 23,950. A sustained move above this level could trigger a relief rally towards 24,100-24,150, while immediate support is placed at 23,780. A decisive breach below this support may accelerate profit booking towards the 23,600 zone.
Rajesh Palviya, Head of Research at Axis Direct, noted that oversold conditions after the expiry session could support a near-term pullback, but advised investors to remain watchful of global technology stocks, which are likely to continue dictating market sentiment in the near term.
