The Nifty 50 recorded its steepest intraday drop in three months, falling 1.02% to 24,712 in Tuesday’s trade as investor sentiment soured after the US Department of Homeland Security confirmed that Washington will impose an additional 25% tariff on all Indian-origin goods from Wednesday, clouding the outlook for Asia’s third-largest economy.
Heavyweights such as Reliance Industries, HDFC Bank, ICICI Bank, Bharti Airtel, Sun Pharma, and Axis Bank dragged the index lower. With today’s crash, the index also broke its key support level of 24,800, and analysts warned the sell-off may persist if the Nifty stays below 24,600.
Analysts flag further downside with 24,600 as key level
Hariprasad K, a SEBI-registered research analyst and founder of Livelong Wealth, said the Nifty slipped below key supports at 24,800 and 24,700, hitting an intraday low of 24,689. He noted that the 24,600 zone now becomes a crucial make-or-break level, with a breach potentially opening the way toward 24,450, signaling a deeper bearish trend into September.
On the upside, he added, only a move above 24,850 could restore a positive bias.
Bajaj Broking observed that the index formed a sizable bear candle with a lower high and lower low, signalling a corrective bias. The brokerage highlighted that a follow-through weakness below the lower band of last Monday’s gap (24,673) could open further downside towards 24,500–24,400, while holding above the band may lead to consolidation between 24,670 and 25,000.
While the short-term support base higher towards 24,500-24,350 levels being the confluence of the 100 days EMA and the recent lows placed around 24,350 levels.
Ajit Mishra, SVP, Research, Religare Broking, pointed out that the Nifty’s slip below the 20-day exponential moving average (20-DEMA) and the Bank Nifty’s breach of its base around 54,900 signal further downside risks. He expects the index to fill the recent gap and retest its medium-term moving average around 24,600.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited, said, “The Nifty opened on a weak note and extended losses through the day, forming a strong bearish candle on the daily chart, signaling sustained selling pressure. Technically, a decisive move above 24,850 could open the way for an upside toward 25,000 and 25,150. On the downside, immediate support is seen at 24,670, followed by 24,500, both of which are likely to be attractive levels for fresh long positions.”
How should investors navigate markets amid rising US tariffs?
Bajaj Broking recommends a staggered accumulation approach, focusing on fundamentally sound counters, particularly those likely to benefit from the upcoming GST rationalisation.
Ajit Mishra added that export-oriented sectors may continue to face selling pressure on any uptick, while domestic demand-driven segments like FMCG and consumer discretionary could offer relative stability. Key triggers to monitor include foreign fund flows, global market trends, and any policy measures aimed at cushioning trade-related concerns.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
