Stock market today: Indian stock market benchmarks closed sharply lower on Tuesday, February 24, as global uncertainty, geopolitical risks and a steep selloff in technology stocks weighed heavily on investor sentiment.
The decline erased recent gains and pushed the market back into a technically sensitive zone, making near-term support and resistance levels crucial for traders and investors.
The Sensex ended the session down 1,068.74 points, or 1.28%, at 82,225.92. The broader Nifty 50 slipped 276.35 points, or 1.07%, to close at 25,436.65. The selloff wiped out nearly ₹3 lakh crore of investor wealth, with the total market capitalisation of BSE-listed companies falling to about ₹466 lakh crore from ₹469 lakh crore in the previous session.
Weak global cues continued to dominate market sentiment. Investors remained cautious after U.S. President Donald Trump said a global import levy of 15% would be imposed following the U.S. Supreme Court’s ruling against his reciprocal tariff framework. Trump also warned countries against reneging on trade agreements negotiated with the U.S. last year, indicating that alternative trade laws could be used to impose even steeper duties.
At the same time, geopolitical tensions added to risk aversion. The evolving situation in Iran, marked by widespread protests and reports of violent crackdowns, has unsettled global markets. The United States has warned of possible military action, keeping investors on edge and reinforcing the demand for safer assets.
Back home, the sharp decline in IT stocks amplified the overall weakness. The Nifty IT index plunged nearly 5% on Tuesday and has fallen around 21% so far in February. Concerns around AI-led disruption to traditional IT service models, coupled with elevated U.S. interest rates and cautious global tech spending, have driven sustained selling pressure. Realty stocks also came under strain, as prolonged weakness in IT is seen as a potential drag on commercial real estate demand and urban housing sentiment.
According to Vinod Nair, Head of Research at Geojit Investments Limited,
“Domestic markets registered a sharp decline, led by significant weakness in IT stocks amid renewed global concerns over AI-driven disruption and margin pressures for traditional service providers. Global trade and tariff worries resurfaced as well.”
He added that Trump’s warnings on trade deals and reports of possible national-security-linked tariffs further pressured sentiment. Nair also pointed out that escalating U.S.–Iran tensions, including embassy staff evacuations and warnings of wider regional escalation, have intensified risk aversion. According to him, markets remain highly sensitive to geopolitical risks and sector-specific pressures, prompting investors to tilt toward defensive and domestically focused segments.
Key technical levels to watch after the selloff
From a technical standpoint, Tuesday’s fall has altered the short-term structure of the Nifty, bringing key moving averages back into focus. Nilesh Jain, VP and Head of Technical and Derivative Research at Centrum Finverse, said the benchmark lost momentum after slipping below an important short-term average.
“The market ended its two-day winning streak as the Nifty formed a bearish candle and slipped below its 21-DMA placed at 25,585 levels. However, the index witnessed a rebound from the 200-DMA around 25,330 levels.”
Jain explained that the 200-day moving average near 25,330 continues to act as a crucial support zone and has so far prevented a deeper correction. As long as this level holds, the broader market structure remains sideways rather than decisively bearish. He noted that the Nifty is currently trading within a wide range of 25,200 on the downside and 25,800 on the upside, which are now the immediate support and resistance levels to monitor.
“Although a short-term pullback cannot be ruled out, it is unlikely to sustain at higher levels as momentum indicators and oscillators have turned negative,” he added.
Meanwhile, Ajit Mishra – SVP, Research, Religare Broking said, “Technically, the Nifty has once again retested the crucial support near the 25,400 zone, and a decisive break below this level could trigger the next leg of the decline towards 25,245, which coincides with the 200 DEMA, followed by a major support area around 25,100, marked by a gap on the daily chart.
On the upside, the 25,600–25,800 zone is likely to act as an immediate hurdle in case of any recovery. Amid the prevailing volatility and weak global cues, participants are advised to remain selective, keep position sizes light and focus on relatively stronger pockets of the market.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
