Nifty fell 0.88% to 22,200s, slipping below its 200‑week moving average.
Nifty Bank slid 0.33% to 54,450.75, while the Midcap and Smallcap indices dropped 1.01% and 0.97% respectively. Sector‑wise, Auto and Metal led the decline, dragging FMCG down, but IT outperformed.
Meanwhile, the 10‑year Treasury yield surged to 5.3%, eclipsing its 2007 peak, and the 30‑year climbed to 5.6%. With Nifty’s earnings yield now trailing the return on U.S. debt, a steady recovery seems unlikely until global yields ease.
Sudeep Shah of SBI Securities flagged the 22,200‑22,220 zone as immediate support, warning that a break below could push the market toward 22,130. Rupak De of LKP Securities sees 22,200 as a key floor, with 22,600 as a hurdle, while Hitesh Rathi of Angel One notes that 22,550‑22,600 sits just above the current resistance.
Ahead of the RBI’s policy meeting and the GST Council’s GST‑2.0 review, traders will keep a close eye on the earnings season and the U.S. jobs report, both of which could tilt the market. With the index sitting below 22,600, it remains in a sell‑on‑rise mode until buying pressure consolidates.