Nifty breaches 25,350 amid sharp sell-off: Should investors go long or is more downside possible? Check what analysts say

Stock market today news: Sensex, Nifty see profit booking in trade. 

• Sensex and Nifty fell up to 1.5 percent amid IT stock sell-off.
• Nifty IT index hit multi-month low, down 21 percent this month.
• Experts see key support at 25,350 and resistance near 25,800.

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The equity benchmark indices Sensex and Nifty fell up to 1.5 percent on Tuesday, dragged down by a sharp sell-off in IT shares amid concerns over AI-led disruption.

The Sensex plunged 1,360 points or 1.63 percent to hit an intraday low of 81,934.73. The broader Nifty declined 385 points or 1.5 percent to 25,327.60 during the session, breaching the 25,350 mark.

The Nifty IT index extended losses for the fifth straight session, slipping to a multi-month low. The index has eroded nearly 21 percent so far this month.

The developments dampened investor sentiment and triggered risk-off trades across sectors. Sectorally, IT and Realty stocks were the worst hit, falling nearly 5 percent and 3 percent, respectively. Pharma, Healthcare and Metal shares showed relative resilience, rising marginally by less than 0.5 percent. PSU Banks and Metals also displayed relative strength despite the broader market weakness.

How to trade? Experts recommend near-term outlook

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said if the index slips below 25,500, the next meaningful support is placed in the 25,370–25,350 zone, which has acted as a base over the past six sessions.

"A decisive breach of this support band could accelerate downside momentum toward the 25,200–25,000 range," he said.

He added that the 25,200–25,000 zone should be viewed as an accumulation area for select stocks from a medium-term perspective. On the upside, 25,800 is likely to act as an immediate resistance level.

Vishnu Kant Upadhyay, AVP – Research Advisory at Master Capital Services Ltd., said overall market sentiment remains fragile.

"The 25,250 zone, which coincides with the 200-day EMA, will be a crucial level to monitor. A sustained hold near this support could trigger some short-covering bounce in the near term," he said.

Santosh Meena, Head of Research at Swastika Investmart, said if Nifty sustains above the 200-DMA at 25,350, a recovery could follow.

"However, a decisive breakdown below the 200-DMA may increase the risk of a sharp decline towards 25,150 and 24,800 levels. On the upside, a sustained move above the 100-DMA at 25,750 could push the index towards 26,000 and 26,300," he added.

Global cues also remained weak.

Asian markets were largely muted, while US equities ended nearly 2 percent lower overnight. The decline came after US President Donald Trump warned countries against abandoning newly negotiated trade deals after the Supreme Court struck down emergency tariffs. He said higher duties could be imposed under other trade laws.

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