Will the bloodbath on D-Street continue or can a short-term relief be expected? Market experts say this

et today News: Sensex, Nifty see profit booking in trade.

• Sensex fell 1,065 points, Nifty dropped 353 points in broad-based market selloff.
• Nifty hit lowest close since October 2025, realty and auto stocks led declines.
• Experts see resistance at 25,400–25,600; downside likely if support breaks.

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The equity markets extended losses for the second straight session on Tuesday, with benchmark indices ending sharply lower amid broad-based selling and weak global cues.

The Sensex tumbled 1,065.71 points, or 1.28 percent to settle at 82,180.47. During the day, it dropped as much as 1,235.6 points, or 1.48 percent to 82,010.58.

The Nifty fell 353 points, or 1.38 percent to close at 25,232.50, marking its steepest single-day decline since April 7, 2025. The fall dragged the index to its lowest closing level since October 15, 2025.

The Nifty opened on a weak note and remained under pressure for most of the session. Selling was seen across sectors, with realty, auto and IT stocks among the major laggards, while banking shares provided limited support.

The broader market remained under severe pressure, with both midcap and smallcap indices declining by up to 3 percent, reflecting elevated risk aversion and weak investor confidence.

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What to expect next?

Market experts said the 25,400–25,600 zone is expected to act as an immediate hurdle for the Nifty.

Ajit Mishra, Senior Vice President (Research), Religare Broking, said the Nifty has approached a crucial support zone near its long-term moving average.

"Following this decline, the Nifty has moved close to its 200 DEMA, placed around the 25,150 level. A brief pause or rebound cannot be ruled out at these levels; however, any recovery will largely depend on the performance of banking and IT stocks, which have shown relatively better resilience so far," Mishra said.

He added that in case of a rebound, the 25,400–25,600 zone is likely to act as an immediate resistance, while a decisive break below the long-term moving average could lead to further downside towards the 24,900 level. He advised investors to keep position sizes in check and trade in line with the prevailing trend.

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said the benchmark index witnessed a sharp selloff, with selling pressure dominating throughout the session.

With this decline, the Nifty has corrected over 4 percent in just 10 trading sessions, making it one of the fastest short-term declines in recent months," Shah said.

He noted that the index is hovering near its 200-day exponential moving average, a key long-term support level tracked by traders and institutional investors. The daily RSI has dropped to 29.27, its weakest reading since March 2025, indicating oversold conditions along with strong downward momentum.

"Going ahead, the 25,370–25,400 zone will act as immediate resistance. As long as the index trades below 25,400, overall sentiment is likely to remain weak. The next support is seen at 25,080, and a break below this level could drag the index towards 24,900 in the short term," Shah added.

On the banking front, the Bank Nifty also ended lower, extending the weakness seen in the broader market. The index slipped below its 20-day EMA, signalling loss of short-term momentum after showing resilience in recent sessions.

According to Shah, the immediate support for Bank Nifty is placed in the 59,000–58,900 zone. A breach below this range could lead to further downside, while the 59,900–60,000 band is expected to act as a key resistance level in the near term.

Realty dived 5.21 per cent, services tanked 2.89 per cent, capital goods (2.76 per cent), consumer discretionary (2.73 per cent), consumer durables (2.71 per cent), telecommunication (2.42 per cent), auto (2.36 per cent) and power (2.23 per cent).

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