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Below the Quote on Daily Market Closing Commet from Ajit Mishra, SVP Research. Religare Broking

“Markets remained volatile on Tuesday and declined by over 1%, extending the prevailing corrective phase. The Nifty, which opened near the 23,600 mark, gradually slipped during the session and settled close to the day’s low at around 23,118. The reversal came as rising crude prices and higher global bond yields overshadowed early strength in IT and select heavyweight stocks.

Sectoral participation remained weak, with IT emerging as the key outperformer. In contrast, realty, metals and energy were among the major laggards. The broader market witnessed significant pressure, with both mid-cap and small-cap indices declining over 2% each, pushing market breadth deep into negative territory.

Investor sentiment remained fragile as Brent crude sustained above $107 per barrel following fresh attacks on Saudi energy infrastructure and concerns over disruptions to global energy supplies. The rupee weakened to around ?95.95 per dollar, its lowest level in more than a month. The Indian 10-year bond yield also moved higher to around 7.09%, while expectations surrounding the US Federal Reserve’s policy decision and rising global yields further contributed to the risk-off tone.

The market is now in the sixth week of correction, with the Nifty approaching its next critical support zone of 23,000–23,100. A decisive break below this band could accelerate the decline towards 22,400–22,500. On the upside, 23,400–23,600 is likely to act as the key resistance zone. With crude remaining elevated, global yields rising and attention focused on the US Fed, we maintain a negative yet cautious stance on the index.  Participants should prefer hedged index positions and consider booking partial profits in broader-market holdings, which had outperformed for some time”

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