Market Plunges Late: 26,000 Mark Breached Amid Volatility

The domestic equity market witnessed a significant late-session selloff on November 24, reversing earlier gains and pushing the Nifty index near its day's low. After trading firmly for most of the day, a sharp decline in the final hour dragged the index down by nearly 175 points from its intraday high. The Nifty concluded the session at 25,884, marking a loss of 74 points amidst considerable volatility. Key outperformers included Bharat Electronics, Hindalco Industries, and State Bank of India, while Tata Motors, Trent, and Infosys emerged as the day's laggards.

Sectoral performance presented a mixed picture, with Realty, PSU Banks, and Metals sectors showing gains. Conversely, Media, IT, and Consumer Durables sectors ended the day in the red. The broader market, however, demonstrated resilience, with the Nifty Midcap 100 and Nifty Smallcap 100 indices posting modest gains. Investors remained cautious, particularly in anticipation of upcoming US inflation data and its potential implications for the Federal Reserve's monetary policy path. Foreign institutional investors continued their selling spree, withdrawing ₹4,171 crore on the day.

Market analysts suggest that immediate support for the Nifty lies in the 25,800-25,700 range, with resistance at 26,050. A decisive move above 26,000 is required to trigger short-covering rallies. The index's current position near its 21-day moving average at 25,850 is a crucial level to watch, with a breach potentially accelerating declines. However, the broader market structure is considered bullish as long as the index remains above its 50-day moving average. For Bank Nifty, the 58,600-58,500 zone is identified as a critical support area.