Nifty slips as IT selling offsets easing crude prices

The Nifty declined 85.30 points, or 0.36%, to 23,329, while the Sensex fell 0.44% to 74,529.08 on Tuesday. Breadth weakened, with 35 Nifty stocks declining against 15 advancing. The key pressure came from IT, Capital Goods and FMCG, while Telecom, Realty and Consumer Durables outperformed. TCS fell 1.13%, while Bajaj Finserv and Bajaj Finance declined 1.43% and 1.22%, respectively. FIIs remained a near-term risk, selling ₹576.20 crore of equities on Monday. However, falling crude prices and largely positive Asian and European markets provided some support. The RBI's ₹25,000 crore OMO sale is another important liquidity signal. With banking-system surplus liquidity around ₹6.05 lakh crore, the RBI is absorbing excess rupee liquidity. A further ₹25,000 crore OMO sale is scheduled for September 28. Meanwhile, August output growth across nine key infrastructure sectors slowed to 4.8%, reflecting weaker production in coal, natural gas, crude oil and fertilisers. This is relevant for industrial and capital-goods earnings if the slowdown persists. Technical view: Nifty's immediate range is 23,285–23,500. Sustaining above 23,500 could improve short-term momentum, while a break below 23,285 may increase selling pressure. What to watch: FII flows, September 28 OMO, crude prices, IT earnings expectations and Nifty's 23,285 support. View: The market remains range-bound with sector rotation. Confirmation of direction should come from index support/resistance and FII participation rather than one-day global cues.