Nifty ends 310 points lower; Current Market Texture Is Weak But Oversold
Shrikant Chouhan,
Head Equity Research,
Kotak Securities:
Mumbai, February 11, 2025: Today, the benchmark indices corrected sharply, with the Nifty ends 310 points lower while the Sensex was down by 1018 points. Among sectors, all the major sectoral indices traded in negative territory, but the Capital Market index lost the most, shed over 3.70 percent. Technically, the market breached the 20-day SMA (Simple Moving Average) or 23,300/77000 support level, and post-breakdown selling pressure intensified. It also formed a long bearish candle on daily charts, which supports further weakness from current levels.
We believe that the current market texture is weak but oversold; hence, level-based trading would be the ideal strategy for day traders. The 23,000/76000 level would be the crucial support zone. If the market holds above this level, we could expect a quick pullback rally towards 23,200-23,225/76500-76700. On the other hand, if it falls below 23,000/76000, the selling pressure is likely to accelerate, and the market could slip to 22,900-22,850/75700-75500.
Satish Chandra Aluri, Lemonn Markets Desk, adds: Benchmark indices extending their losing streak on Tuesday with sharp losses on weak global cues and tariff fears after Trump announced reciprocal tariffs this week itself with India likely to get hit. India is at a high risk from potential U.S. reciprocal levies due to its pronounced tariff differentials.
Markets witnessed broad based selling across the sectors and broader Mid and Small caps were hit the hardest amid debate over valuations and weak earnings. Market steadily lost ground throughout the session with losses accelerating in the afternoon. Markets now look forward to the upcoming meeting of PM Modi with Trump later this week on hopes for any exemptions for Indian exports from tariff threat.
Technically, Nifty 50 is once again back at the critical support levels around 23000 failing which it can retest 22800 again while on the upside, 23200-23300 zone acts as next resistance. Bank Nifty also closed lower with next support level at 49000.
