Sensex crashes over 900 points, Nifty drops below crucial support level

The S&P BSE Sensex lost 930.55 points to end at 80,220.72, while the NSE Nifty50 was down 309 points to close at 24,472.10. 

Benchmark stock market indices witnessed a huge decline on Tuesday, after shares tanked in various sectors including banking, auto, and metal.

The S&P BSE Sensex lost 930.55 points to end at 80,220.72, while the NSE Nifty50 was down 309 points to close at 24,472.10.

Ajit Mishra – SVP, Research, Religare Broking Ltd said that the markets continued their downward trend, losing over a percent in an ongoing corrective phase.

"After a flat opening, Nifty gradually declined and approached a crucial support level at the 100-day exponential moving average (DEMA). The selling pressure was broad-based, with realty, metal, and auto sectors among the worst affected. Notably, the midcap and smallcap segments saw a sharp decline, shedding between 2.75% and 3.65%," he added.

Nifty has now corrected by around 7% from its record high, reaching the critical moving average support at the 100 DEMA i.e. 24,485 level. The outlook suggests further downside, particularly in the midcap and smallcap spaces. On the index front, the next major support is around 24,000, with potential resistance between 24,700 and 25,000 in case of a rebound. We recommend adjusting trades accordingly and advise against adding to losing positions.