Why is the stock market falling? Anil Singhvi explains key levels for Nifty 50, Bank Nifty

Stock Market Today: Indian equity benchmarks traded lower in the afternoon session on Tuesday, January 7, as investors booked profits near record highs.

The BSE Sensex was down 282.54 points, or 0.33 per cent, at 84,780.80 at 14:17 IST. The index had opened at 84,620.40 and moved between a high of 85,075.99 and a low of 84,617.49. The previous close was 85,063.34.

The Nifty 50 slipped 84.50 points, or 0.32 per cent, to 26,094.20. The index opened at 26,143.10, against a previous close of 26,178.70.

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Why markets are falling

Anil Singhvi, Managing Editor at Zee Business, said the decline is driven by a mix of profit booking and fund flow trends.

He pointed to mild selling by foreign institutional investors (FIIs) over the last two days. Domestic institutional investors (DIIs) have also slowed their buying pace. Markets are close to lifetime highs, which has triggered profit booking.

Singhvi added that large banks, including HDFC Bank, are seeing profit taking. The auto sector has also witnessed selling pressure after recent gains.

Nifty, Bank Nifty: Key levels to watch

According to Singhvi, a close below 26,100 on the Nifty could signal further weakness. The next support for the Nifty lies in the 25,875 to 26,000 range.

Bank Nifty has broken below the 59,850 level after two days. The next strong support is seen in the 59,575 to 59,750 zone.

He said weakness could deepen if the Nifty closes below 26,100 and Bank Nifty below 59,700. On any recovery, investors should lighten positions in the 26,150 to 26,250 range for the Nifty and 60,100 to 60,300 range for Bank Nifty.

FII and DII flows

So far this month, FIIs have sold shares worth Rs 3,122.7 crore in the cash segment. In contrast, DIIs have bought equities worth Rs 5,716.7 crore.

The divergence in flows suggests domestic support remains, but near-term market direction will depend on whether selling pressure eases near key support levels.