IT Sector Faces AI Challenge: Nifty's Rally at Risk? Market Top Concerns Emerge

• IT stocks, including Infosys and Wipro ADRs, saw significant drops due to a new AI tool from Anthropic, impacting Nifty IT.
• Despite IT sector weakness, Gift Nifty is flat, and overall market sentiment remains positive with strong FII buying.
• Key support levels for Nifty are 25,641 (50 DEMA) and 25,450 (20 DEMA); a break below 25,450 could signal a shorting opportunity.
• The market needs to consolidate above 25,800; yesterday's high could be a market top if 20 DEMA breaks.
• Investors are advised to exit positions from the recent rally, focus on quality stocks, and use strict stop-losses for intraday trades.

Why It Matters: New AI challenges for IT and market consolidation raise concerns about Nifty's rally and potential market top.