Taking Stock: Sensex, Nifty fall for sixth day in a row; mid, small-caps crack further

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Biggest Nifty losers included NTPC, Adani Ports, Adani Enterprises, SBI, Coal India, while gainers were ITC, Bharti Airtel, Trent, M&M and Infosys.

Except IT index (up 0.6 percent), all other sectoral indices ended in the red with PSU bank, healthcare, capital goods, realty, metal, power, oil & gas, media and telecom down 1-3 percent.

BSE Midcap index was down 2 percent and Smallcap index was down over 3 percent.

More than 160 stocks touched their 52-high on the BSE, including, Coforge, eClerx Services, BASF, Dr Lal PathLab, V-Mart Retail, Strides Pharma, HeidelbergCement India, Vijaya Diagnostic Centre, CMS Info Systems, Va Tech Wabag among others. Click To View More

On the other hand, 130 stocks touched their 52-week low including Vodafone Idea, Zee Entertainment Enterprises, IDFC First Bank, RBL Bank, Gujarat Ambuja Exports, Easy Trip Planners, among others.

Outlook for October 8

Aditya Gaggar Director of Progressive Shares

It was a roller coaster ride as after a steady opening, the Index soared higher but relentless selling continued in the Mid and Smallcap segments and eventually, Nifty50 lost the psychological support of 25,000. In the last session, a steep recovery was seen in the Banking counters but rapidly it fizzled out and dragged the Index lower to end the session at 24,795.75 with a loss of 218.85 points.

Barring IT, all the other sectors ended the day in red with Media and PSU Banks being the major laggards. Underperformance was extended by the Broader markets as Mid and Smallcaps fell by 2.01% & 2.75% respectively.

In the series of bearish candles, Nifty50 added one more red candle to the daily chart and formed a Three Black Crows pattern. Only in the case of a strong sustainable move above 25,000, trend reversal be confirmed till then markets are likely to remain in the grip of bears with the next support being placed at 24,400.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty slipped further due to ongoing geopolitical concerns, with sentiment worsening as the index fell below the 55 EMA, indicating a bearish trend. A bearish crossover in the RSI is adding to the downward price momentum.

In the short term, the trend may remain volatile, with a predominantly bearish outlook. Overall, the market appears to be "sell on rise" as long as it stays below 25,000. On the downside, support levels are positioned at 25,700, 25,590, and 25,400.

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices continued weak momentum, the Nifty shed 218 points while the Sensex was down by 640 points. Among Sectors, except IT all the major sectoral indices registered selling pressure at higher levels but Media index lost the most shed over 3.70 percent. Technically, after a long-time market slipped below 50-day SMA (Simple Moving Average). It also formed bearish candle on daily charts and holding lower top formation on intraday charts, which is largely negative.

We are of the view that, the larger market texture is weak but due to temporary oversold conditions, we could see non-directional activity in the near future.

For the day traders now, 24700/80700 and 24650/80500 would be the key support zone while 25000/81800 and 50-day SMA or 25050/82000 could be the key resistance areas for the bulls. Short-term traders should remain cautious and be very selective as there is a risk to get trapped at lower levels. Disclaimer: The views and investment tips expressed by investment 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.