The benchmark dipped 0.28% on Tuesday, opening 64 points lower after a volatile session and closing at 22,716.
With the 200‑week moving average at 22,600, this is the first time since the Covid‑19 crash that Nifty has touched that long‑term support.
Sector‑level pressure lingered: IT, Realty and FMCG trended lower, while Metal and Pharma saw buying interest. Within the index, Adani Enterprises and Adani Ports led gains, whereas Titan and Wipro lagged.
Broader market mirrored the dip, with the Nifty Midcap 100 falling 0.99% and the Nifty Smallcap 100 sliding 0.81%. The index has now recorded a 6.8% decline and its eighth straight weekly fall, the longest losing streak since 2020.
On the upside, August industrial production grew 8.0% YoY, the fastest pace in two months, and consumer durables demand points toward a rebound in urban discretionary spending. Resilient GDP growth and reasonable valuations could cushion the downside.
Shed light on the outlook, Nagaraj Shetti of HDFC Securities said the underlying trend remains weak, with a break below 22,550 possibly triggering further declines toward 22,200. A sustained move above 22,900 could extend the pullback to 23,050. Upcoming data—US consumer confidence, JOLTS job openings, China PMI, US/UK Q2 GDP, crude inventories and Fed Governor Waller’s comments—will shape the next phase.