The Sensex plunged 600 points to 39,922.46 while the Nifty ended the day with a loss of 160 points at 11,729.60.
The market barometers Sensex and Nifty suffered big losses on October 28 following an across-the-board selloff as investors turned cautious due to rising COVID cases worldwide, uncertainties on the front of US stimulus and election.
The Sensex plunged 600 points, or 1.48 percent, to 39,922.46 while Nifty ended the day with a loss of 160 points, or 1.34 percent, at 11,729.60.
BSE midcap and smallcap indices closed 0.93 percent and 0.76 percent lower.
"After the initial rush, we are falling in tandem with the weak global trend as the world’s economic recovery will slow down this quarter with implications for world equities. Domestically, the market is watching the developments in the Bihar assembly election," said Vinod Nair, Head Of Research at Geojit Financial Services.
The rest of the sectoral indices closed in the red, with metal, Bankex and finance falling over 2 percent each.
Here is what experts say on what investors should do on October 29:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The Nifty formed a long bearish candle which is placed at the support of 11,700 levels. This indicates a lack of respite for the bulls after one day of upside bounce.
As of now, the broader high low range is intact for the market around 12,025-11,700 and a sustainable move beyond the range could mean a pick up in sharp momentum on either side.
Any sustainable move above 11,600 could bring the bulls back into action towards 11,900. A decisive move below 11,600 could mean a sharp downside breakout in the market. Important lower support is placed at 11,650-11,600 and immediate resistance is now placed at 11,850.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The Nifty has overruled the possibility of the triangle consolidation by breaking the low of 11,700. It would now follow the zigzag corrective pattern, in which it could 11,600 or 11,550.
On a daily basis, the Nifty also closed below the support of 20-day SMA, which is an indication of further weakness. The 50-day SMA is also placed at 11,540 levels. While on the upside, 11,800 and 11,830 would act as a major hurdle for the market.
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services
The Nifty formed a bearish engulfing and a bearish belt hold kind of candle on a daily scale that indicated that the bears remained in control through the session.
The index has turned highly volatile in the last couple of sessions and got stuck in a wider range where declines were being bought while multiple hurdles are intact at 11,950-12,020 zones.
Now, it has to cross and hold above 11,777 to witness an upmove towards 11,900 then 12,020 levels while on the downside, major support exists at 11,666 and below that, a fresh round of selling could be seen towards 11,550-11,500 zones.
Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities
The medium-term trend remains positive but in the short-term, the market could continue to witness volatility.
Immediate range is seen at 11,540-12,140. Momentum remains positive above 11,540. A breach is expected to infuse short-term selling pressure.
Currently, selective buying is suggested in metals, infra and mid-cap stocks. Investors are advised to get aggressive below 11,540.
Ajit Mishra, VP-Research, Religare Broking
Rising COVID-19 cases globally are worrying investors as a strict lockdown could be imposed and economic recovery which is still at the nascent stage could once again get hit.
Further, no stimulus announcement as well as elections in the US, too, are keeping investors on edge.
The scheduled derivative expiry of October month contracts will further add to the volatility.
We reiterate our cautious view on markets and suggest continuing with a stock-specific trading approach.
Aamar Deo Singh, Head Advisory, Angel Broking
The Nifty has crucial support around the 11,600-11,650 zone whereas resistance is seen around 11,850-11,900. Volatility is being witnessed ahead of the monthly FNO Expiry tomorrow.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.