Nifty Falls Below 24,000, Sensex Crashes 900 Points: What’s Causing the Market Panic?

The Indian stock market began the May series with a sharp fall on April 25. Both Nifty and Sensex opened in the red due to heavy selling in banking and midcap stocks. The Sensex dropped 900 points, while the Nifty slipped below the 24,000 mark.

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Banking and Broader Markets Bleed

Banking stocks were the worst hit. Indices like Bank Nifty, Nifty Private Bank, and Nifty PSU Bank all fell sharply. Midcap and smallcap stocks also saw heavy losses, with Nifty Smallcap 100 down 3% and Nifty Midcap 100 falling by 2.5%.

Rs.7.5 Lakh Crore Investor Wealth Lost

As the market turned negative, investors saw a massive Rs.7.5 lakh crore wiped out from overall market value. Only around 436 stocks advanced, while over 2,700 declined.

Market Caution Due to Tensions

Investors are worried about the recent Pahalgam terror attack and how India might respond. The situation is making people cautious. Experts believe if the conflict doesn’t escalate, markets might stabilize. But overall, valuations are already high, and further growth may be limited.

Mixed Global Signals

Global cues are mostly positive. Wall Street saw a big rally after hopes that the U.S. might cut interest rates soon. Tech stocks performed well. Asian markets also opened strong on April 25, following gains in U.S. markets.

Key Levels to Watch in Nifty

Technical experts say Nifty has strong support near 23,800. If it holds this level, it might bounce back. On the upside, 24,400 is a resistance level.

Derivatives Indicate Bearish Signs

Options data shows that call writers (bearish traders) are increasing their positions. This shows caution in the market, and 24,500 is acting as a short-term ceiling, while 24,000 remains a strong support zone.

What to Expect in May?

The May series will be influenced by Q4 earnings, U.S. Fed (FOMC) decisions, and global developments. Also, any further tensions between India and Pakistan could impact investor sentiment in the short term.

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