Nifty Falls Below 24,000 in April Series; Analysts Identify 23,500 as Key Support Level
Market Volatility Continues as Sensex and Nifty Settle Lower
The benchmark indices Sensex and Nifty experienced a volatile session on Tuesday, settling lower on the monthly derivatives expiry day. The Nifty, in particular, closed below the 24,000 mark, a significant milestone.
The indices began the day on a weak note, with the Sensex opening at 76,886.91 and the Nifty at 23,995.70. Despite an initial attempt to recover in early trade, the gains were short-lived, and the indices gradually drifted lower throughout the session.
The Sensex ultimately declined by 416.72 points, or 0.54 percent, to close at 76,886.91. During the day, it dropped as much as 562.57 points, or 0.72 percent, to 76,741.06. The Nifty fell by 97 points, or 0.4 percent, to end at 23,995.70.
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Investors remained cautious due to persistent geopolitical uncertainty, particularly surrounding US-Iran negotiations, which kept crude oil prices elevated and weighed on sentiment.
Analysts predict that the indices may see further downside if selling pressure continues, with 23,500 seen as the next key support level.
Market Analysis
| Index | Opening | Closing | Change |
|---|---|---|---|
| Sensex | 76,886.91 | 76,886.91 | -416.72 (-0.54%) |
| Nifty | 24,000 | 23,995.70 | -97 (-0.4%) |
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
While some analysts believe that the Nifty may extend its weakness towards 23,650, followed by 23,500 in the short term, others see support for the index in the 23,850-23,800 zone.
Ajit Mishra, SVP, Research at Religare Broking, noted that the Nifty is attempting to hold above its short-term moving average near the 23,950 level amid volatility, but weakness in the banking space remains a concern.
Sector-wise, the trend was mixed, with energy, metals, and select pharma stocks offering support, while banking, auto, and financials came under pressure. In the broader market, midcap and smallcap indices rose nearly 0.5 percent each, indicating selective buying interest.
Investor Takeaway
Investors should be cautious and consider the potential for further downside if selling pressure continues.
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