Nifty Slips From Highs, Trades Below 25,300 as Market Turns Cautious
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Summary: Benchmark index pares gains after early rally as investors book profits near record levels.
As the Indian stock market became more cautious after a positive start, the Nifty 50 fell from its daily highs on Tuesday and is now trading around 25,300. The index began on a positive note and briefly tried higher levels, but the momentum faded as investors decided to book profits near recent highs.
Early gains were aided by key banking and energy sectors, which pushed the benchmark higher in the first half of the session. However, selling pressure arose at elevated levels, particularly in heavyweight firms, pushing the index down from its highs. Traders said the market appears to be struggling to find fresh triggers after a strong rally in recent weeks.
The banking sector, which has recently played a significant role in stabilising the market, produced mixed results. While some private lenders maintained their gains, others went negative, limiting the index's rise. Weak global signals, concerns about demand, and fluctuations in currency are putting stress on IT and metal stocks.
The cautious tone of the benchmark was reflected in broader markets. The session was dominated by stock-specific action, and the midcap and smallcap indices stayed within a narrow range. Investors are growing pickier, according to analysts, preferring quality names over aggressive bets in the wider market.
Market participants said the pause was expected after the Nifty’s recent climb toward record territory. “There is no panic selling,” a market dealer said. “This looks like a healthy consolidation near the top, with traders unwilling to chase prices higher without clarity on global and domestic cues.”
From a technical perspective, analysts see 25,200–25,250 as an important support zone in the near term. A sustained break below this level could invite deeper consolidation, while a decisive move above 25,350 may be needed to revive bullish momentum. Until that time, the index will probably stay within a certain range.
Investors are currently focused on global markets, commodity prices, and future economic data. This could definitely set the tone for the coming sessions. However, now, the market’s mood remains cautiously optimistic, with the Nifty looming just below a key psychological level as it digests recent gains.
