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The Indian stock markets witnessed a sharp correction on Tuesday as traders booked profits. Sensex plunged 1,301.03 points (1.58%) to 81,128.87, while Nifty declined 341.50 points (1.37%) to 24,583.20. 

The downturn followed Monday’s rally, with investors opting for profit booking ahead of the US Consumer Price Index (CPI) inflation report. Technology stocks bore the brunt of the selloff, while heavyweights Infosys, TCS, and HCL Technologies saw 3-4% declines.

Volatility continues to hurt market sentiment amid absence of clarity on either side of the trend. The constant selling pressure is keeping a lid on every rise of the Nifty. At the moment, the highs at 24800 will remain an important point to consider. With the market unable to retain the bullish stance we need to be careful as we move ahead into the week.

We had highlighted the possibility of a reaction and identified the levels around 24600 as a good area to consider for a long position and any move below 24500 would be a surrender. However, as trends remain buoyant, we should be looking at a potential revival. The dip into the support region mentioned on the charts found some good buying interest coming into it and could now generate some revival as the RSI is seen holding the 40 levels and hinting at some rebound to the way up.

We are now observing that the Max Pain Point has shifted to 24550. The PCR remains supressed below 1, indicating that the selling pressure has stepped up once again. As trends are unclear and the bullish bias seen on Monday are not seen triggering some positive vibes, it is time to be alert.

Also Read: Pidilite’s growth gets stickier, but valuation a sore spot

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

Also Read: Top 5 fundamentally strong penny stocks to watch out for in 2025

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