^NDX Today, January 21: Nasdaq 100 Sinks 2% as Tech Selloff Deepens
Nasdaq 100 today slid 2.12% to 24,987 as mega-cap tech selling deepened. The index, tracked by ^NDX, closed below the 25,187 pivot, reinforcing a bearish bias and wider intraday swings. For investors in India using Nasdaq 100 feeder funds or global ETFs, this pullback matters for rupee portfolios. We break down what drove the drop, the key support levels to watch, and practical steps to manage risk while staying aligned with long-term goals.
Drivers of the 2% slide
The selloff in large tech weighed on Nasdaq 100 today, turning risk appetite lower and pushing the index to 24,987. Market tone has soured as traders reassess growth premiums and earnings durability. Sentiment looks cautious to “morose,” with breadth lagging big winners, according to Barron’s coverage source.
Wider intraday ranges showed up across growth names and related ETFs as Nasdaq 100 today lost the 25,187 pivot. Average True Range sits near 310 points, signaling elevated day-to-day movement. Until leadership stabilizes, short-term trading could remain choppy, with quick reversals around opening prints and into the last hour as liquidity pockets shift.
Technical map: levels and indicators
Closing below 25,187 adds bearish bias to Nasdaq 100 today. Traders are watching 24,923 as first support, with the 50-day near 25,415 as the hurdle to repair damage. Bollinger lower band clusters around 24,840, making that zone important. Meyka’s brief flagged the same levels and the growing downside pressure source.
RSI near 58 is neutral, while ADX around 14 shows no strong trend, so price action may be range-bound but tense. Nasdaq 100 today sits under the mid-Bollinger line, with the 50-day near 25,415 acting as a pivot for sentiment. A daily close back above that average would soften downside pressure and reduce whipsaws.
Implications for Indian investors
For Indian investors in Nasdaq-focused feeder funds and global ETFs, Nasdaq 100 today means near-term NAV pressure and higher volatility. Currency adds another layer. Rupee strength can cap foreign returns, while rupee weakness can cushion declines. SIP investors may welcome better entry prices, but lump-sum allocations should pace entries to avoid catching falling knives.
Keep an eye on mega-cap earnings dates and guidance quality, as these names drive index swings. Track U.S. yields and moves in the dollar, which often correlate with tech multiples. For India, watch IT ADRs and sector cues that spill into domestic benchmarks, since global risk sentiment can influence local flows and sector rotations.
Strategy ideas for the next sessions
Nasdaq 100 today puts 24,923 to the test. Many traders prefer staggered entries around support and partial profit-taking into bounces toward 25,187. Invalidations often sit below the 24,840 area to define risk. Position sizing matters more than conviction in choppy tapes, and using stop losses can limit damage if volatility spikes.
Long-term investors in India could stick to SIPs and rebalance rules. Consider tilts to quality tech with strong cash flows if adding exposure. Avoid timing every wiggle. Instead, monitor whether price reclaims the 50-day near 25,415. If that happens on solid breadth, it can mark improving odds for trend continuation without overtrading.
Final Thoughts
Nasdaq 100 today fell 2.12% to 24,987, slipping below the 25,187 pivot and spotlighting 24,923 support with the 50-day near 25,415. For Indian investors, this is a timely reminder to keep risk controls tight while staying consistent with plan-based allocations. Short-term traders can work around clear levels and defined stops. Long-term investors may prefer SIPs, periodic rebalancing, and a focus on quality growth. Watch mega-cap earnings, U.S. yields, and whether price can close back above the 50-day. That reclaim would ease the bearish bias and reduce choppy swings.
FAQs
Why did the Nasdaq 100 drop 2% today?
Mega-cap tech selling weighed on the index as investors questioned growth premiums and near-term earnings confidence. Sentiment has cooled, and breadth lagged leaders. The close below the 25,187 pivot added pressure, keeping focus on support at 24,923 and the 50-day near 25,415.
What are the key support levels to watch now?
24,923 is the first key support, with the Bollinger lower band near 24,840 reinforcing that zone. Resistance sits at the 25,187 pivot and the 50-day near 25,415. A daily close back above the 50-day would improve the setup and reduce downside risk.
How should Indian investors respond to this tech selloff?
Stick to plan-based allocations. SIPs can benefit from lower prices, while lump-sum investors may pace entries. Keep position sizes modest and use clear risk limits. Monitor rupee moves, U.S. yields, and mega-cap earnings guidance since these factors influence tech multiples and feeder fund NAVs.
Is the trend now decisively bearish for the Nasdaq 100?
Not decisively. ADX near 14 signals no strong trend, while RSI around 58 is neutral. The bias is bearish while price stays below 25,187 and the 50-day near 25,415. A sustained reclaim of those levels would soften the downside case and stabilize momentum.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
