Indian benchmark indices witnessed a significant decline on Tuesday, with heavyweight stocks leading the downturn amid global market weakness and concerns over a new US tax policy.

Market Performance

The NSE Nifty 50 fell 255.70 points or 1.02% to close at 24,712.05, while the BSE Sensex dropped 849.37 points or 1.04%, ending the day at 80,786.54. The Nifty reached its lowest level in seven sessions, falling over 200 points from the day's high.

Key Contributors to the Decline

Reliance Industries and ICICI Bank were the primary contributors to the market's downward movement. Other significant decliners included:

• Larsen & Toubro
• Bharti Airtel
• Bajaj Finance

Sector-wise Performance

The market breadth heavily favored sellers, with 14 out of 15 NSE sectors closing lower. The most affected sectors were:

1. Defence
2. Realty
3. PSU Bank

Broader Market Impact

Mid and small-cap indices underperformed the benchmark indices:

• BSE Midcap index: Down 1.34%
• BSE SmallCap index: Down 1.68%

The overall market sentiment was decidedly bearish, with 2,884 stocks declining compared to 1,219 advancing on the BSE.

Factors Influencing the Market

1. US Tax Decision: The US announcement to impose a 50% tax on Indian imports added significant pressure to the market.
2. Global Market Weakness: The decline in Indian markets was in line with a broader weakness observed in global markets.

ICICI Bank Investor Meet Schedule

Amid the market turmoil, ICICI Bank, one of the key contributors to the day's decline, has announced its upcoming investor meet schedule:

These meetings, scheduled to be held in-person, may provide further insights into the bank's strategy and outlook in the coming months.

As the market grapples with both domestic and international headwinds, investors will be closely watching for any signs of recovery or further deterioration in the coming trading sessions.

The NSE Nifty 50 index rebounded on Monday, ending a three-session losing streak with a significant gain of 140.20 points to close at 24,821.10. The surge was primarily driven by buying interest in heavyweight stocks like Reliance Industries and HDFC Bank.

Technical Analysis

Analysts at Bajaj Broking Research have identified a crucial support level for the Nifty 50 at the 24,500-24,400 range. This support zone represents a confluence of technical factors, including:

• Previous swing low
• 100-day Exponential Moving Average (EMA)
• 61.8% Fibonacci retracement level

The index formed a bullish engulfing candle on the daily chart, suggesting a potential shift in market sentiment. Experts anticipate the Nifty to consolidate between the 24,500 and 25,000 levels in the near term.

Key Levels to Watch

Upside Targets

• A move above 25,000 could potentially lead to further gains towards 25,250.
• If the index sustains above 24,800, it may rally towards the 25,000-25,200 range.

Downside Support

• The immediate support lies at 24,600.
• A break below this level could trigger a correction towards the 24,200-24,160 zone.

Broader Market Performance

The BSE Sensex also reflected the positive sentiment, gaining 446.95 points to finish at 81,337.95.

Banking Sector Outlook

The Bank Nifty index mirrored the main index's performance, forming a bullish candle. However, analysts caution that it may face resistance and potentially decline towards the 55,500 level, with support seen in the 55,500-55,150 range.

Currency Market

In the forex market, the Indian rupee weakened against the US dollar, closing at Rs 86.82. This marks its lowest closing level in over four months, indicating potential headwinds for importers and companies with significant dollar-denominated debt.

The market's positive performance, despite the rupee's weakness, suggests that domestic factors and global cues are currently outweighing currency concerns for equity investors. However, traders and investors should remain vigilant of currency movements, as they can impact corporate earnings and foreign investment flows in the medium to long term.

As the Nifty 50 attempts to build on this recovery, market participants will be closely watching key economic data releases and corporate earnings reports in the coming days to gauge the sustainability of this upward move.