The Nifty 50 witnessed sharp selling pressure, nosediving more than 1.6 percent to record an 18-month closing low as bears tightened their grip on the market. The broader technical structure has remained firmly under the control of bears since September, with the index sustaining well below the 10-, 20-, 50-, 100- and 200-day EMAs (Exponential Moving Averages), all of which are sloping downward. Meanwhile, momentum indicators continued to signal persistent bearishness, while the India VIX rose to a four-month high.
Brent crude oil prices sustaining above $100 a barrel, intensifying inflation concerns, a weakening rupee against the US dollar, and continued FII selling weighed on market sentiment. Market participants also turned more cautious ahead of the September-quarter earnings season.
The benchmark Nifty 50 has shed more than 2,500 points, or 10 percent, from its August peak of 24,774 and is poised to close lower for the ninth consecutive week. On Thursday, the index broke below the April low of 22,182 intraday. Hence, any extension of selling pressure, coupled with a fall below Thursday's low, could pose a major risk to the psychological 22,000 mark. A sustained break below 22,000 could trigger further panic selling. The next crucial support is placed at 21,700, which corresponds to the April 2025 low.
However, in the event of a rebound, 22,400 may act as an immediate resistance, followed by 22,600, according to experts, who continue to advocate a 'sell-on-rallies' strategy.
The Nifty 50 opened moderately lower at 22,599, and selling pressure intensified as the session progressed. The index fell as low as 22,180 before ending at 22,231.80, its lowest closing level since April 7, 2025. It declined 371 points, or 1.64 percent, during the session.