Markets fall for 3rd day; holding 25,950 crucial for Nifty to reclaim recent highs

Stock Market Update: Sensex Slides 503 Points on Tuesday

The Indian equity benchmarks continued their downward trend on Tuesday, with the Sensex plummeting nearly 504 points amid intense selling in banking majors and Reliance Industries, as well as continued foreign fund outflows.

Sensex Falls 0.59% to Close at 85,138.27

• The Sensex slipped 503.63 points to close at 85,138.27, marking a 0.59 percent decline.
• During the day, the index dropped 588.9 points, or 0.68 percent, to 85,053.

The Sensex had touched an all-time intra-day high in the previous session but ended lower on profit booking in the latter half.

Nifty Declines 0.55% to Settle at 26,032.20

The Nifty declined 143.55 points or 0.55 percent to settle at 26,032.20.

Analysts' Views on Nifty's Support and Resistance Zones

• Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities: "The 20-day EMA range of 25,980-25,950 remains a crucial support. On the upside, the 26,140-26,160 zone will act as a key hurdle. A sustained move above 26,160 could trigger an upside rally toward 26,300."
• Rupak De, Senior Technical Analyst at LKP Securities: "The Nifty saw another session of subdued trade with a negative bias. A mild negative divergence on the daily chart has added to the weak momentum. A rising trendline is offering immediate support, but a slip below it may push the index toward 25,900. Resistance is at 26,150, and a move above this could improve sentiment."
• Nilesh Jain, Head – Technical and Derivatives Research (Equity Research) at Centrum Broking Ltd: "Any fall below key support levels could drag the Nifty toward 25,800. The index formed a Doji-like candle on the daily chart after slipping below 26,100. The 21-DMA support lies near 25,915, and a breakdown could take the index to 25,800, which is an important rising trendline support connecting previous major lows."

Bank Nifty Update

On the Bank Nifty, Sudeep Shah said the index ended in the red for the second session, forming a bearish candle with a long upper shadow. He pegged support at the 20-day EMA zone of 58,950-58,850 and cited 59,600-59,700 as the immediate hurdle. "A sustained move above 59,700 could lead to a sharp rally toward 60,200," he added.