Sensex Slips 600 Points: Market Experts Cite Trade Woes, Technical Strain

Indian equity benchmarks witnessed a sharp decline on Friday, with the Nifty 50 breaching the 25,000 mark and the Sensex shedding nearly 600 points. At the time of writing, the Nifty was down 0.68% at 24,940, while the Sensex hovered at 81,671. Market experts say the fall is driven by a mix of macroeconomic uncertainty, technical breakdowns, and derivative signals that suggest volatility ahead—but also hint at a possible short-term rebound.

Kranthi Bathini of WealthMills Securities pointed to unresolved trade tensions between India and the US as a key factor weighing on investor sentiment. “There are a lot of uncertainties looming around the India-US trade policy. The conclusion is not coming though we are expecting something positive,” he said.

Bathini added that the breach of the 25,000 level on the Nifty has intensified selling pressure, and investors should watch European market cues for signs of recovery.

Feroze Azeez, Joint CEO at Anand Rathi Wealth, offered a more technical lens. He noted that short positions in index futures have reached 84%, a level that historically signals a potential bounce. “Every time it crosses 80 on either side, the market tends to reverse direction. This has held true in the last 12–13 instances,” Azeez said.

He also highlighted synthetic futures trading at a premium, suggesting the market may be oversold in the short term. On the domestic front, Azeez pointed to strong inflows into small-cap mutual funds, indicating that retail investor appetite remains intact.

Independent technical analyst Anshul Jain added that the Nifty is approaching its 50-day exponential moving average at 24,870. “From there it can bounce, but if it breaches 24,870, it could swing as low as 24,733,” he warned.

The broader market weakness was evident across sectors, with 37 of the 50 Nifty constituents trading in the red. Financial stocks led the decline, with Axis Bank and SBI Life among the top laggards, dragging the index by nearly 100 points.