Market Brief: Nifty Technical Outlook The Indian equity benchmarks faced significant downward pressure on **February 24, 2026**, with the **Nifty 50** closing at **25,424.65**, shedding **288 points** or **1.12%**. This sharp decline effectively erased gains from the previous two sessions, as the index slipped decisively below its **21-day Exponential Moving Average (EMA)**. Increased selling was primarily driven by massive long unwinding and a notable tech rout. The **Nifty IT index** plunged over **2%** to **30,849.05** following global concerns over automated tools disrupting legacy software systems. These fears, coupled with new tariff warnings from the U.S. administration, have intensified global risk aversion. Technical Support and Volatility Despite the intraday slide, the Nifty found temporary structural support near its **200-day Daily Moving Average (DMA)**, which currently sits at approximately **25,325**. Market participants are closely watching the **25,400** mark as a "line in the sand"; a sustained break below this level could trigger a deeper correction toward the **25,100–25,250** zone. Volatility has surged, with the **India VIX** hovering around the **14.17** level. While this reflects heightened nervousness, the index remains within a broader consolidation range of **25,300 to 25,750**. On the upside, **25,600** remains the immediate resistance, followed by a major supply wall at **25,800**. Sectoral Trends and Institutional Flows The broader market showed a clear divergence in performance. While IT and Realty faced intense pressure, selective buying was evident in domestic cyclicals. * **Nifty PSU Bank:** Gained **2.11%** * **Nifty Metal:** Rose **1.33%** * **Nifty FMCG:** Advanced **1.71%** Institutional activity remains mixed. While **FIIs** recorded net outflows of approximately **₹638 crore** during the week, **DIIs** have continued to provide a cushion, maintaining a net positive stance for the month. The Indian Rupee also experienced slight depreciation, settling at **90.95** against the U.S. Dollar. This currency fluctuation, combined with the monthly F&O expiry dynamics, is expected to keep the market in a highly reactive state in the coming sessions. Selective stock picking remains the preferred strategy as the index tests its long-term moving averages.