The Nifty 50 slipped to a six-month low on Tuesday, extending the sharp sell-off seen in the previous session as higher crude prices, elevated US bond yields and continued foreign selling kept investors on edge.
The index fell as much as 0.92% to an intraday low of 22,569.65. On the six-month chart, the Nifty marked a 1.06% decline. Nifty is down 6.57% over the past month and 3.18% over the past week. On a year-to-date basis, the index is down 13.53%, with a 2026 high of 26,328.55.
The move follows Monday's 1.6% decline, when the Nifty closed at 22,780.25 and the Sensex tumbled 1,124 points, wiping out nearly Rs 9 lakh crore in investor wealth. Both benchmarks finished at their lowest levels in almost six months.
The pressure comes as crude remains elevated amid uncertainty around the US-Iran conflict and regional energy supplies. Brent crude is trading around $106 a barrel, keeping concerns over India's import bill in focus.
The rupee has also breached the 96-per-dollar mark, trading around Rs 96.10. A combination of higher oil prices and currency depreciation could increase imported inflation risks and add to pressure on the broader economy, says Ponmudi R, CEO of Enrich Money.
Nifty Technical Outlook
According to Ponmudi, the 22,500 level has emerged as a crucial support zone for the benchmark. A decisive break below this level could intensify selling pressure and expose the Nifty to the 22,300-22,000 range.
On the upside, 22,800 is the immediate resistance. A sustained move above that level could open the path towards the 23,000 mark, although recovery attempts could face selling pressure at higher levels.
The technical setup remains weak. The Relative Strength Index (RSI) is in the mid-20s, indicating deeply oversold conditions, while the Moving Average Convergence Divergence (MACD) remains deeply negative, signalling persistent downside momentum.
Ponmudi said further movements in crude oil and the rupee are likely to remain key determinants of near-term investor sentiment and the direction of domestic equities.
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