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Below the Quote on Daily Market Analysis by Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd

The markets extended their losses for the third straight session, declining by over half a percent. Following a flat opening, the Nifty gradually slipped lower during the first half and then moved within a range until the close. Persistent foreign fund outflows and caution ahead of the Federal Reserve's policy decision continued to dampen sentiment. Most sectors mirrored the broader market trend, with banking, metals, and energy being the top losers. The broader indices also faced selling pressure, ending lower by 0.6% to 0.9%.  

The Nifty has breached a critical support level at 24,300, and the sharp decline in the banking sector, which had been pivotal in the recovery, is now exacerbating the weakness. This could potentially drag the index further down toward the previous swing low zone i.e. 23,850-24,000, while resistance is expected in the 24,450-24,600 zone. Despite the cautious outlook, there are stock-specific opportunities on both the upside and downside, and traders should position themselves accordingly.

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