Sensex Crashes 600 Points as FIIs Exit, Technical Charts Signal More Pain Ahead.
Equity markets extended their losing streak on Friday, with the BSE Sensex tumbling 624 points to 81,559 and the Nifty50 sliding 216 points to 24,846 by mid-morning trade. Volatility spiked as foreign institutional investor (FII) selling, weak technical signals, and profit booking weighed heavily on sentiment.
Despite optimism over the India–UK Free Trade Agreement (FTA), investor nerves were evident across sectors, with all broader market indices in the red.
FIIs Drive the Decline
Santosh Meena of Swastika Investmart pointed to persistent FII outflows, especially in equities and derivatives, as the biggest drag. “Valuations remain a concern for FIIs, and the earnings season hasn’t delivered enough positives to offset that discomfort,” he said. Additionally, the uncertainty over the India–US trade deal has added to the negative cues.
Geojit’s VK Vijayakumar noted that FIIs have offloaded over ₹11,500 crore in just four trading sessions, creating sustained downward pressure. Smallcap stocks, in particular, continue to suffer amid warnings that their valuations had become “excessive and hard to justify.”
Key Technical Levels in Focus
Markets are also reacting to troubling technical patterns. Anand James of Geojit warned that a break below 24,900 on the Nifty could trigger a slide toward 24,750–24,650, with further support near 24,450 and 24,000. Upside resistance is capped around 25,130 for now.
Axis Securities’ Akshay Chinchalkar flagged the emergence of two back-to-back bearish engulfing candles on the charts — a rare and strong bearish signal. “The 25,000 level is now make-or-break. Until Nifty closes above 25,340, bears will hold the advantage,” he added.
Chinchalkar also noted that Nifty is once again falling from the 25,500–25,800 supply zone, from where a sharp decline began in October last year. Meena echoed that sentiment, adding that Nifty may struggle to break its all-time high of 26,277, set in September 2024, for the foreseeable future.
Demand Zones, Resistance, and Outlook
The immediate demand zone lies at 24,800–24,735, with 24,500 as a key support. Below that, the 200-day moving average near 24,000 could come into play. On the upside, Nifty would need to cross the 20-DMA at 25,300 to reignite bullish sentiment.
With profit booking intensifying and both technical and macro indicators pointing to further weakness, the near-term outlook remains bearish. The focus now shifts to whether the Nifty can defend the 25,000 level — or if markets are bracing for a deeper correction.
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