IT Selloff Sinks Nifty Below 24,000; Pharma Holds Ground

The Nifty 50 slipped below the 24,000 mark by Tuesday afternoon. Information technology stocks led a broad decline. At 12:35 p.m., the index traded at 23,937.05, down 166 points. The Sensex lost 524 points to 76,569.98.

Of 4,232 stocks traded on the BSE, 2,556 declined against 1,482 advances. Still, 176 stocks hit 52-week highs. The selling concentrated in index heavyweights rather than spreading across the board.

IT stocks absorbed the heaviest selling. TCS fell 3% to ₹2,063.40 on volumes of 35.46 lakh shares. Infosys dropped 2.97% to ₹1,033.80, with over 1.09 crore shares changing hands – the highest traded value on the Nifty 50 at ₹113,176.93 lakhs. Infosys (INFY), which carries an Alpha Score of 57 from AlphaScala, saw that volume reflect broad index selling rather than stock-specific pressure. Wipro slid 2.47% to ₹175.73.

Metals joined the rout. Hindalco declined 2.76% to ₹986.20. Tata Steel fell 2.36% to ₹194.28 on heavy volumes of 1.37 crore shares.

Pharma stocks moved the other way. Cipla jumped 2.56% to ₹1,452 with over 37.20 lakh shares traded. Sun Pharmaceutical rose 1.23% to ₹1,885.80. Dr. Reddy's Laboratories added 0.83% to ₹1,301.40. The sector's defensive positioning and domestic demand kept it from joining the selloff.

SBI Securities said the Nifty faces a support zone at 23,960–23,980. A break below that range could push the index toward 23,840–23,800, the brokerage said. Options data showed meaningful call writing at 24,100 and 24,200 strikes. The 24,000 put strike holds substantial open interest, followed by the 23,900 strike. The advance-decline ratio on the Nifty stood at 26:24, reflecting near-even participation after the drop.

Bank Nifty tested support near 57,700. The 58,000 level remains resistance. A fall below 57,700 could open a move toward 57,500–57,400. On the Sensex, support sits at 76,400 with resistance at 77,400.

Commodities traded with a weak undertone. COMEX Gold held near the $4,220–$4,240 resistance zone. MCX Gold opened with a gap down above ₹1,46,500. Silver slipped. COMEX prices near $63, a break lower potentially targeting $61–$60. MCX Crude Oil opened near ₹7,000 after breaking below a long-term ascending trendline, with support at ₹6,970. For a detailed breakdown of gold, silver, and crude oil positioning, see our commodities analysis.

Macro factors provided a partial offset. Crude oil in international markets continued softening to the $73–$74 range, a net positive for India's trade deficit and inflation outlook. Progress in U.S.–Iran negotiations supported global risk appetite, though a formal agreement is still pending. Traders tracked the expected visit of U.S. Trade Representative Jamieson Greer to India this week for talks with Commerce Minister Piyush Goyal.

The rupee opened nearly flat at ₹94.65–₹94.6 against the dollar, with resistance at ₹94.7–₹94.75.