Taking Stock: Sensex, Nifty plummet 2% each; investor wealth worth nearly Rs 10 lakh crore wiped out

Biggest Nifty losers were BPCL, L&T, Tata Motors, Shriram Finance, Axis Bank are among, while gainers were JSW Steel, ONGC.

All the sectoral indices ended in the red with realty down 4.5 percent and auto, bank, media, capital goods, oil & gas index down 2-3 percent.

BSE Midcap and smallcap indices down 2 percent each.

More than 200 stocks touched their 52-high on the BSE, including, Balrampur Chini Mills, Britannia Industries, Coforge, Deepak Fertilizers, Dr Lal PathLab, EID Parry, Hindalco Industries, JSW Steel, Jubilant Ingrevia, Lloyds Metals, Marico, Metropolis Healthcare, Polycab India, Tata Communications, among others. Click To View More

On the other hand, more than 60 stocks touched their 52-week low including Spandana Sphoorty Financial, RBL Bank, Raj Television Network, New Delhi Television, Equitas Small Finance Bank, Ujjivan Small Finance Bank.

Also Read - Sensex, Nifty tumble over 2% as geopolitical tensions, regulatory changes weigh on markets

Outlook for October 4

Aditya Gaggar Director of Progressive Shares

The macro uncertainties coupled with the amendments in the F&O segment dented the overall market sentiments in today's trade. After a gap-down opening, bears were seen tightening their grip resulting in violating important support levels across the Index. With a massive cut of 546.80 points, Nifty50 ended the trade at 25,250.10.

All the sectors ended the session in red with Realty and Auto being the major laggards. Selling pressure was witnessed in the Broader markets as well, and the Mid and Smallcaps corrected by 2.21% and 1.96% respectively.

With a strong bearish candle, the Index has given a breakdown from the series of higher top higher bottom formation which indicates trend reversal but on the lower timeframe i.e. hourly chart, overall markets seem extremely oversold and a pullback rally is warranted.

Now, the next critical support is placed at the psychological support of 25,000 coupled with 50DMA while on the higher side, 25,550-25,600 will work as a resistance zone.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

Nifty opened gap down and post a minor recovery it continued to drift lower to close deep in the red. On the daily charts we can observe that the Nifty has closed below the key 20-day moving average (25508) which is a sign of weakness.

The daily momentum indicator has a negative crossover which is a sell signal. Thus, both price and momentum indicator suggest that the weakness is likely to continue. The initial target of 25500 has been achieved today and hence we revise it downwards to 24800. On the upside 25600 – 25550 is the immediate hurdle from short term perspective.

Bank Nifty also closed below its crucial short-term averages. Bank Nifty which was leading the upmove during the latter half of September is now correcting and leading the fall. We expect the fall to continue towards 49700 which is the low it touched in August. So, a retest of those levels is likely. On the upside, 52600 – 52700 is a crucial resistance.

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