The Indian stock market experienced significant selling pressure on Tuesday, February 11, with the NSE Nifty 50 closing at 23,071.80, a 1.32% drop, testing the critical 23,000 support level, according to analysts. This downturn was largely triggered by concerns over escalating tariff wars following Donald Trump's announcement of a 25% tariff on steel and aluminum, which investors fear could hurt India's business prospects (Source: Text 2). The Sensex also plummeted by 1.44%, ending at 76,199.76.
Market analysts suggest that a break below the 23,000 mark could lead to further selling towards 22,800. Immediate resistance is seen at 23,200, with a critical hurdle near 23,300. For Bank Nifty, the key support is placed at 48,000, while 49,700 will act as an immediate hurdle (Source: Text 1).
The market's heightened volatility has led to advisories for traders to maintain strict stop-loss measures and avoid overnight positions. Uncertainty surrounding government spending and dismal earnings reports have further contributed to investor unease. Foreign Institutional Investors (FIIs) have pulled out Rs 1,00,000 crore since January 2025, drawn by higher US bond yields and a strong dollar (Source: Text 2).
Experts recommend a cautious stance, prioritizing risk management, especially in midcap and smallcap stocks, which are witnessing heavy selling. Large caps and gold are considered safer bets amid the current volatility. The market's direction hinges on clarity regarding Fed policy, India-US trade talks, and a domestic valuation reset.