Stocktwits - The Indian equity market faced heavy selling pressure on Tuesday, with the Nifty 50 plunging 261 points to close at 24,683, decisively breaking below its recent consolidation range.
This sharp decline positioned the index at a critical technical crossroads. Analysts suggest the move may be part of a healthy correction rather than a trend reversal, but all eyes are now on the 24,500 support level.
SEBI-registered analyst Mayank Singh Chandel highlighted the formation of a long bearish candlestick on the daily chart, signaling short-term seller dominance.
He noted that repeated failures to sustain above the 25,200 resistance mark had set the stage for a reversal.
Still, he maintained that the broader uptrend, with its higher highs and higher lows, remained intact, framing the decline as a potential pullback to form a new higher bottom.
Chandel pegged 24,500 as the immediate make-or-break level.
He noted that a breach could lead to deeper losses toward 23,800, while a rebound above 25,000 would be necessary for bulls to regain momentum.
Options data backs this view, with significant call interest at 25,000 acting as resistance and put writing at 24,500 hinting at expected support.
Chandel believes that the Nifty is entering a healthy correction phase. He advises traders to remain cautious and wait for a clear bounce from 24,500 or a strong close above 25,000 before initiating fresh directional trades.
Analyst Dipak Takodara also flagged 24,500 as a crucial downside marker but underscored 25,000–25,100 as immediate resistance.
He suggested that a breakout above this zone could propel the index toward 25,300 or higher, while a close below 24,600 could deepen the fall to 24,450 or even 24,400.
He noted that the index closed around its 9-period simple moving average (SMA) and wondered whether this holding could dictate near-term direction.
If this level holds, a rebound toward 25,000 is likely; however, a failure to maintain this support could prompt a decline toward the 20-SMA, which has historically been a strong support during significant market events such as “Operation Sindoor.”
Meanwhile, analyst Bharat Sharma saw the breach of 24,800 more as a profit booking rather than outright panic.
He dismissed any immediate bearish takeover and pointed out that while some background concern around a Covid resurgence lingered, it was not a major market driver.
Sharma identified 24,500–24,550 as critical near-term support, with deeper cushions at 24,200–24,000. He advised against overreacting unless these levels give way.
For intraday trades, Sharma pointed to 24,660 as immediate support and 24,750–24,800 as the levels to watch on the upside.
Overall, analysts remain cautious but do not see cause for alarm, yet. As the market heads into a fresh session, 24,500 remains the key technical level to watch closely.