Domestic equity markets ended with marginal losses on Tuesday as investor sentiment remained cautious amid concerns over inflationary pressures, elevated crude oil prices and ongoing geopolitical tensions in West Asia. According to reports from ET Now, the Nifty 50 index closed at 23,649 with a decline of 6.45 points or 0.03%, while the BSE Sensex ended at 75,315, up 77.05 points or 0.10%. The Nifty opened 25 points higher at 23,675.30 and initially witnessed buying momentum, rising to an intraday high of 23,782.30, but profit booking during the first half of the session wiped out early gains, dragging the index lower to touch an intraday low of 23,317. The Sensex was down more than 1,000 points during the day before rebounding over 1,100 points from the lows to close in positive territory, with buying in select banking and IT heavyweights helping erase most losses.
Technical analysts warn that the short-term outlook leans toward continued consolidation or further correction, driven by the bulls' persistent inability to conquer key overhead resistance levels. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the market was not able to sustain the hurdle around 23,800 again on Tuesday and Nifty closed the day off the highs. Shetti noted that a small negative candle was formed on the daily chart with upper shadow, signalling resistance at higher levels. The 23,800-23,850 zone continues to act as a major resistance area, while the 23,350–23,400 range is expected to provide strong support. The daily RSI at 44.70 indicates weakening momentum and limited bullish strength. GIFT Nifty at 23,677 signalled a mildly positive start for Tuesday's trade, with the trend pointing to a positive opening despite weak Asian market cues.
On the sectoral front, the NSE indices showed mixed trends with Nifty IT emerging as the top gainer with a rise of 3.23%, while Nifty Realty gained 1.43% and Nifty PSU Bank advanced 0.81%. According to ET Now, Nifty Consumer Durables rose 0.44%, Nifty Pharma gained 0.42%, and Nifty Auto closed higher by 0.29%. However, banking and financial shares remained under pressure throughout the session, with the Nifty Private Bank index declining 0.74% and Nifty Metal slipping 0.05%. Broader markets showed resilience despite weakness in frontline indices, with the Nifty MidCap index rising 0.91% and Nifty SmallCap index gaining 1.17% during the session. However, midcap and smallcap shares continued to see selling pressure, with the BSE 150 Midcap Index slipping 0.43% and the BSE 250 Smallcap Index dropping 1.71%.
Market experts emphasize that a sustained move above the 23,700–23,800 region will be essential to strengthen recovery momentum toward the psychological 24,000 mark, where stronger selling pressure is likely to emerge. As reported by ET Now, on the downside, the 23,600–23,500 zone continues to remain a crucial immediate support area, and a decisive breakdown below this region could extend weakness toward the broader 23,300 zone. India VIX fell by 4.87% to 18.67, signalling easing volatility and lower fear among market participants. In the derivatives segment, significant put writing at the 23,500 strike along with aggressive call writing at the 23,700 strike indicates a likely range-bound movement in the near term. Markets may remain range-bound on Tuesday as investors assess global developments, bond yields and currency movement, with a positive GIFT Nifty trend suggesting domestic markets could open with a slight upward bias.
