- Nifty 50 fell below 23,000 points for the first time since April 2025, extending losses.
- The index dropped 196 points intraday, reaching a low of 22,955 on Monday.
- Rising oil prices, weak global cues, FII selling, and rupee depreciation pressured markets.
India's benchmark Nifty 50 index slipped below 23,000 points for the first time since April 2025, extending a selloff to a fourth session on Monday. The level was seen as an immediate support for the blue-chip gauge. Intraday, the index fell 196 points or 0.85% to as low as 22,955, eroding as much as Rs 1.7 lakh crore in market capitalisation.
A sharp surge in international crude oil prices linked to the ongoing conflict in the Gulf, weak global cues, persistent foreign institutional selling, a depreciating rupee and rising volatility as measured by the India VIX have driven Indian equities lower. Last week, Sensex and Nifty registered steep declines of over 5%, the worst since June 2022.
FIIs sold a massive Rs 10,717 crore of domestic shares on a net basis on Friday and over Rs 35,000 crore last week.
ALSO READ: How To Play Market Volatility: Kotak Slams Overreaction As Geopolitical Shock Overdone'
Nifty Support Level
According to analysts, the next support for the 50-stock Nifty lies at 22,800. The last time the index traded at this mark was April 11, 2025.
"We believe that as long as the market is trading below 23,500, a weak formation is likely to continue," said Shrikant Chouhan, head equity research at Kotak Securities. "On the downside, the market could continue its correction wave until 22,800. Further downward movement may also continue, potentially dragging the index to 22,600," he added.
The Nifty's resistance is placed around the 23,400-23,500 range, said Hitesh Tailor, research analyst at Choice Broking. This zone could emerge as a significant hurdle for any short-term recovery attempt, he added.
The relative strength index, a momentum indicator that measures the speed and change of price movements, of the Nifty went below 20 during the session, indicating it is in an oversold zone.
Nifty Target Cuts
Multinational brokerage Citi has slashed the year-end target for the Nifty to 27,000 from 28,500 earlier, citing downside risks to corporate earnings in fiscal 2027. The new target still indicates a 17% upside to the previous close. Nomura's downward revision was even sharper at 24,900.
Notably, the average of analysts' 12-month Nifty target compiled by Bloomberg is around 29,800, implying a return potential of 28%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.