Indian stock markets are going through one of their sharpest short-term selloffs in recent months, leaving investors anxious about what comes next. After two straight sessions of heavy losses, the big question on Dalal Street is whether the fall will continue or if a short-term relief rally is possible.
On Tuesday, selling pressure was widespread as weak global cues and profit booking hit sentiment. The Sensex plunged 1,066 points, or 1.28 percent, to close at 82,180. During the day, it slipped as much as 1,236 points. The Nifty dropped 353 points, or 1.38 percent, to end at 25,232, its lowest closing level since October 2025.
The Nifty opened weak and stayed under pressure through the session. Realty, auto and IT stocks were among the worst hit, while banking stocks offered only limited support. The broader market saw sharper damage, with mid cap and small cap indices falling by up to 3 percent, reflecting rising risk aversion and fragile investor confidence.
This sharp correction has erased over 4 percent from the Nifty in just 10 trading sessions, making it one of the fastest declines seen in recent times.
Market experts say the Nifty is now close to an important long-term support level, which could lead to a brief pause or technical rebound.
One analysts noted that the Nifty is trading near its 200-day moving average, placed around 25,150. At such levels, a short-term bounce cannot be ruled out. However, he cautioned that any recovery will depend mainly on banking and IT stocks, which have shown relatively better strength compared to other sectors.
If the market rebounds, the 25,400–25,600 zone is expected to act as a strong resistance. A clear break below the long-term support, he warned, could pull the Nifty down towards 24,900. He advised investors to keep positions small and avoid aggressive bets.
Another analyst said the market remains under strong selling pressure. The Nifty is hovering near its 200-day exponential moving average, a key level closely watched by traders.
The daily RSI has dropped to around 29, its weakest reading since March 2025, indicating oversold conditions but also strong downward momentum. he said the index is likely to face resistance near 25,370–25,400. As long as it stays below this range, sentiment will remain weak. Immediate support lies near 25,080, and a break below that could drag the index to 24,900 in the short term.
For now, experts suggest caution, patience and a focus on quality stocks until clearer signals emerge.
