Nifty 50 shed 1.56% on Monday, shattering the psychological 23,000 barrier and posting its steepest intraday loss since July 8, 2026. The selling wasn't isolated to one sector; Nifty PSU Bank, Nifty Realty, and Nifty Financial Services led the charge downward, dragging down the broader index. Dr. Reddy’s Laboratories and Infosys were the lone bright spots among the top gainers, while Tata Motors Passenger Vehicles and Adani Enterprises took the biggest hits.
The damage extended well beyond the large caps. Nifty Midcap 100 and Nifty Smallcap 100 both fell over 1.60%, indicating broad-based risk-off sentiment. This isn't just a domestic issue. Brent crude jumped more than 3.8% to roughly $108 a barrel, stoking inflation fears. Geopolitical friction around the Strait of Hormuz and renewed Houthi threats keep the oil market volatile, directly pressuring Indian import bills.
Traders are now eyeing specific price levels to gauge the next move. Sudeep Shah of SBI Securities notes that as long as Nifty stays below 22,950, the bearish trend holds. He expects a slide toward 22,650 and potentially 22,500. Shrikant Chouhan of Kotak Securities adds that while the market is technically oversold, a sustained break below 22,800 could trigger a bounce to 23,000-23,050 for short-term traders.
Rupak De of LKP Securities paints a grimmer picture, citing rising US bond yields as a headwind. He places immediate support at 22,650-22,700, warning that a breach could extend the correction. For now, 23,000 acts as a hard ceiling. Investors should wait for a clear signal above 22,950 before re-entering long positions.