Sensex down by 857 points; Broader Mid and Small caps also posted losses mirroring the benchmarks
FinTech BizNews Service
Mumbai, February 24, 2025: Today, the benchmark indices corrected sharply, with the Nifty ends 243 points lower and the Sensex down by 857 points. Among sectors, the IT and Digital indices experienced significant declines, shed over 2 percent, while some buying interest was noted in selective FMCG and Auto stocks, according to Shrikant Chouhan, Head-Equity Research, Kotak Securities.
Technically, after a gap-down open, the market faced selling pressure throughout the day. A bearish candle on daily charts and correction continuation formation on intraday charts indicates further weakness from current levels. We believe that while the current market texture is weak, but it is also oversold; therefore, a quick pullback rally is a strong possibility.
For traders, the level of 22650/74900 will act as a trend decider. As long as market is trading below the same, weak sentiment is likely to continue. Below which it could slip till 22450-22400/74000-73800. Conversely, if it rises above 22650/74900, it could extend bounce back up to 22750-22800/75200-75500.
According to Satish Chandra Aluri, Lemonn Markets Desk, Benchmark indices ended sharply lower on Monday led by losses in IT. Broader Mid and Small caps also posted losses mirroring the benchmarks.
Markets opened sharply lower in the morning following Friday’s US sell off after data showed weak business activity and rising inflation expectations among U.S. consumers. After testing the key support level of 23800 few times in last couple of weeks, markets eventually broke down after sharp losses in IT stocks as US data showed less room for any rate cuts. Among sectors, defensive FMCG and Pharma along with Auto segments fared relatively better.
Technically, Nifty 50 broke the key 22800 support after multiple attempts and has immediate support near 22500. Continuous slide lower has brought the RSI below 30 indicating oversold conditions which might lead to a rebound in coming sessions. Bank Nifty also ended sharply lower with next support around 48200 levels.
