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What is the story about?
The Nifty slipped back after the monetary policy day optimism and broke below the 26,000 support. The index has now closed below the 20 Day Moving Average for the first time in several sessions, signalling a weakening trend.
Adding to the pressure, Nifty posted its lowest close in nine days, reflecting broader market softness. The sell-off was across sectors, with the sharpest pain in the broader markets. The Midcap index logged its biggest fall in four months.
Nifty eventually ended 226 points lower at 25,961, failing to hold the 26,000 mark as 46 of 50 stocks closed in the red.
The broader market decline was even steeper, with 94 out of 100 midcap stocks and 96 out of 100 smallcap stocks trading lower. The Midcap index has now slipped more than 1,200 points and has fallen in four of the last five sessions. It is down 1,800 points from its November 17 high of 61,180.
The broader market meltdown has erased nearly ₹7.5 lakh crore in investor wealth.
The next important cue for markets comes from overseas, as the US Federal Reserve will announce its policy in the early hours of Thursday India time.
Another overhang is the flood of IPOs hitting the Street. Five issues opened for subscription today, taking the total number of IPOs this year past 100 and the total fundraising to almost ₹1.8 lakh crore, which is higher than last year's full year mobilisation.
Among the upcoming issues, the mega ICICI Prudential AMC IPO opens this Friday. At ₹10,622 crore, it will be the fourth largest issue of the year.
India's broader trade sentiment also got a boost as New Delhi and Moscow signed 16 agreements across defence, trade, economy and healthcare at the India Russia Annual Summit last week.
Siddhartha Khemka of Motilal Oswal said markets are likely to stay volatile ahead of the US Fed outcome, with commentary on interest rates shaping global risk sentiment. Domestically, the rupee, FII flows and liquidity conditions in the secondary market, especially amid heavy primary market activity, will drive near-term moves.
Nandish Shah of HDFC Securities said Nifty's close below the earlier swing low of 25,986 confirms a lower bottom after a lower top, reinforcing the short-term corrective trend.
Shah added that a break below 25,891 could trigger further selling and push the index towards the next support at 25,722, where the 50 DEMA lies.
Nilesh Jain of Centrum Broking said the setup indicates a consolidation phase, with Nifty expected to oscillate between 25,800 and 26,200 in the near term. The decline also came with a 7% jump in India VIX to 11, signalling rising caution.
Rupak De of LKP Securities said sentiment remains weak in the short term, with the index likely to drift towards 25,730. On the upside, resistance is placed around 26,000 to 26,100.
Adding to the pressure, Nifty posted its lowest close in nine days, reflecting broader market softness. The sell-off was across sectors, with the sharpest pain in the broader markets. The Midcap index logged its biggest fall in four months.
Nifty eventually ended 226 points lower at 25,961, failing to hold the 26,000 mark as 46 of 50 stocks closed in the red.
The broader market decline was even steeper, with 94 out of 100 midcap stocks and 96 out of 100 smallcap stocks trading lower. The Midcap index has now slipped more than 1,200 points and has fallen in four of the last five sessions. It is down 1,800 points from its November 17 high of 61,180.
The broader market meltdown has erased nearly ₹7.5 lakh crore in investor wealth.
The next important cue for markets comes from overseas, as the US Federal Reserve will announce its policy in the early hours of Thursday India time.
Another overhang is the flood of IPOs hitting the Street. Five issues opened for subscription today, taking the total number of IPOs this year past 100 and the total fundraising to almost ₹1.8 lakh crore, which is higher than last year's full year mobilisation.
Among the upcoming issues, the mega ICICI Prudential AMC IPO opens this Friday. At ₹10,622 crore, it will be the fourth largest issue of the year.
India's broader trade sentiment also got a boost as New Delhi and Moscow signed 16 agreements across defence, trade, economy and healthcare at the India Russia Annual Summit last week.
Siddhartha Khemka of Motilal Oswal said markets are likely to stay volatile ahead of the US Fed outcome, with commentary on interest rates shaping global risk sentiment. Domestically, the rupee, FII flows and liquidity conditions in the secondary market, especially amid heavy primary market activity, will drive near-term moves.
Nandish Shah of HDFC Securities said Nifty's close below the earlier swing low of 25,986 confirms a lower bottom after a lower top, reinforcing the short-term corrective trend.
Shah added that a break below 25,891 could trigger further selling and push the index towards the next support at 25,722, where the 50 DEMA lies.
Nilesh Jain of Centrum Broking said the setup indicates a consolidation phase, with Nifty expected to oscillate between 25,800 and 26,200 in the near term. The decline also came with a 7% jump in India VIX to 11, signalling rising caution.
Rupak De of LKP Securities said sentiment remains weak in the short term, with the index likely to drift towards 25,730. On the upside, resistance is placed around 26,000 to 26,100.
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