Nifty in Freefall: 600-Point Bloodbath Signals Deeper Bear Mauling

After a one-day pause, Nifty decisively resumed its downtrend, plunging over 600 points (2.60%) to close at 22,512—its lowest level since April 9, 2025. The index opened 300 points lower and extended losses throughout the session, closing near the day's low after registering a steep 15% correction from its all-time high of 26,373, now marching towards its 52-week low of 21,743.

NSE cash volumes dipped marginally by 7% from the prior session, with HCL Tech, Power Grid, and ONGC emerging as the sole Nifty 50 gainers amid a sea of red; Titan, Shriram Finance, and Trent spearheaded the losses.

All sectoral indices closed lower, hammered by brutal declines in Consumer Durables, Metals, Realty, Financial Services, and PSU Banks. Midcaps and smallcaps bore the brunt of the rout, with Nifty Midcap 100 tumbling 3.90% and Nifty Smallcap 100 slumping 3.94%, while market breadth cratered—the BSE advance-decline ratio shriveling to a dismal 0.16.

The rupee hit a record low of 93.9750, battered by fears of an escalating Middle East conflict that amplified the sell-off across Indian assets.

Nifty remains firmly in the bears' grip, with every intraday recovery savagely sold off—particularly after breaching key support at 22,930. Near-term floor now eyes 22,400, beyond which a breakdown could drag the index toward its 52-week low of 21,743; upside resistance has shifted lower to the 22,850-22,900 band.

HSL Prime Research