The Nifty extended its decline for a second straight session, plunging 371 points to close at 22,231, its lowest level since April 7, 2025, as selling pressure intensified through the session. After opening marginally lower, the index continued to slide and ended close to the day’s low.
The benchmark also breached the previous swing-low support at 22,217 and the April 2026 low of 22,182 during the session, signalling a further deterioration in market sentiment and an intensification of the ongoing downtrend.
The latest fall has pushed the Nifty more than 10% below its recent swing high of 24,774 recorded in early August. The index is now nearly 16% below its all-time high of 26,373.
Only three Nifty constituents—Infosys, Tech Mahindra and Axis Bank—managed to close higher, while Adani Enterprises, JSW Steel and ITC were among the biggest losers.
Selling was broad-based, with all sectoral indices ending in the red. Metal, Realty, Media and Auto stocks bore the brunt of the selloff.
The broader market also came under heavy pressure. The Nifty Midcap 100 plunged 2.53% to end near a six-month low, while the Nifty Smallcap 100 declined 2.34%.
The selloff has also taken a significant toll on market capitalisation. BSE-listed companies lost nearly Rs 13 lakh crore in market value over the past two sessions.
Pressure on the rupee persisted despite the currency’s relatively modest decline on the day. The rupee weakened 1 paise to close at 96.78 per dollar, after hitting a record low of 97.10 during the session. Rising crude oil prices and sustained foreign institutional outflows continued to weigh on the currency.
The broader market outlook remains challenging as a combination of domestic and global headwinds continues to weigh on sentiment. Brent crude surged 4% to around $104 a barrel, while the Indian 10-year government bond yield climbed to around 7.2%, its highest level in two years.
The US 10-year Treasury yield was hovering near 5.3%, its highest level since 2002, after minutes from the Federal Reserve indicated that most officials expected another rate hike this year.
With multiple macro factors working against equities and the RBI signalling a tighter policy stance, investors may increasingly look to the earnings season for a potential near-term catalyst. The earnings season kicked off with TCS, with Canara HSBC Life Insurance, Anand Rathi Wealth and Can Fin Homes among the companies scheduled to report on Friday.
Nagaraj Shetti of HDFC Securities said the sharp decline over the past two sessions, coupled with a faster downside retracement, points to the possibility of further weakness. He noted that the crucial long-term trend-line support near 22,400 on the weekly chart has been decisively broken.
Shetti said the short-term trend remains negative and warned that sustained weakness could drag the Nifty towards 21,800-21,700 in the near term. On the upside, any rebound is likely to encounter resistance around 22,500.
Nandish Shah of HDFC Securities said the Nifty breached both the previous swing-low support at 22,217 and the key April 2026 swing low of 22,182 during the session. According to Shah, the decisive breakdown of these levels points to an escalation in selling pressure and a strengthening of the downtrend.
He sees the next support around 21,750, while 22,400 and 22,600 are likely to act as immediate resistance levels.
Osho Krishan of Angel One said the 22,080-22,000 zone, corresponding to the Nifty’s 2025 swing-closing levels, is now an important support area. A decisive break below this band could accelerate the decline towards 21,750.
However, Krishan said a relief rally cannot be ruled out following the recent selloff, although any technical rebound should not be interpreted as a trend reversal. He sees 22,350-22,450 as the immediate resistance zone, with 22,600-22,800 likely to remain a stronger barrier.
Rupak De of LKP Securities said bears remained firmly in control as the Nifty slipped below the previous session’s low, with little respite for buyers. He sees support at 22,180, below which the index could fall towards 22,000. On the upside, 22,350 is the immediate resistance level.
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