Market sentiment shifted to a cautious stance as heavy selling in the technology sector and resilient US employment data cooled expectations for immediate interest rate cuts. The Nifty 50 closed at **25,807.20**, marking a decline of **0.57%** and snapping a four-day winning streak. Similarly, the Sensex dropped **0.66%** to end at **83,674.92**. Key Market Drivers A primary trigger for the downturn was the US non-farm payrolls report, which added **130,000** jobs in January—surpassing the forecasted **70,000**. This unexpected strength in the labor market suggests the Federal Reserve may maintain higher interest rates for longer, reducing the appeal of growth-oriented assets. The IT sector bore the brunt of the sell-off. The Nifty IT index plummeted **5.51%**, with major players like Tech Mahindra and Infosys falling nearly **6%**. Concerns over AI-driven disruptions and a global tech correction added to the pressure, wiping out approximately **₹2.80 lakh crore** in investor wealth in a single session. Technical Outlook Nifty is currently navigating a consolidation phase between **25,800** and **26,000**. While the index managed to hold its immediate support at **25,800**, a breach below this level could lead to a deeper correction toward the **25,500–25,600** range. Resistance remains firm at **26,000**, characterized by heavy call writing that acts as a significant hurdle for any upward momentum. The India VIX rose slightly to **11.73**, indicating a modest increase in market nervousness, though volatility remains relatively low. Sector and Institutional Activity Despite the broader weakness, select sectors showed resilience. The Nifty Financial Services index gained **0.38%**, led by buying interest in ICICI Bank and SBI. Bajaj Finance emerged as a top gainer, rising **3.11%**. Institutional flows remain mixed. On February 11, FIIs were net buyers with **₹943.81 crore**, while DIIs recorded a minor sell-off of **₹125.36 crore**. This tug-of-war between foreign inflows and domestic profit-booking continues to define the current range-bound movement. Analysts recommend a selective approach, focusing on stocks with strong earnings visibility and relative strength. Buying interest is concentrated in banking, auto, and select healthcare counters, even as the overall market breadth remains tilted toward sellers with over **2,500** stocks declining on the BSE.