Markets post worst day in 10 weeks; holding 23,000 crucial for bullish momentum to return for Nifty, say…

As per the latest business developments, Key market indices The two key benchmark indices declined the most in 10 weeks on Thursday, weighed down by a spike in oil price marks, selling in bank stocks and weak global trends that dampened investor sentiment.

The Sensex tanked 1,247.71 points, or 1.67 percent to settle at 73,580.54. Through the session, it plummeted 1,264.33 points, or 1.68 percent to 73,563.92.

The Nifty eased 383.70 points, or 1.64 percent to end at 23,063.10.

Both the indices recorded their steepest single-session slide since July 8.

"The sharp slide kept the index near the softer end of the session's range, with the 23,000 zone emerging as the immediate backing. A sustained close below 23,000 could extend the downside toward the 22,900-22,800 zone, while 23,200 is likely to act as the immediate resistance during recovery attempts," stated Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm.

"Momentum indicators stay weak, with the RSI around 31, reflecting firm negative momentum and approaching oversold territory. The MACD stays deeply in negative territory, confirming continued softness," he further noted.

The immediate downside zone now shifts towards 23,000, followed by 22,850-22,800. On the upside, 23,268 becomes the first resistance, while 23,366-23,441 is the key recovery hurdle, stated Dhupesh Dhameja, Derivatives Research Market observer, SAMCO Securities.

Among the Nifty constituents, Cipla and ONGC emerged as the top gainers, while Bajaj Finance and HDFC Life were the top laggards.

On the sectoral front, all major sectors closed softer, with Nifty Metal and Nifty Auto witnessing the sharpest declines.

The broader market additionally remained under pressure throughout the session, with Nifty Midcap 100 declining 2.25 percent and Nifty Smallcap 100 closing 1.53 percent softer.

Going forward, the 22,900-22,870 zone could act as a crucial backing area. A sustained move below 22,870 could trigger further selling pressure towards 22,750 marks.

"On the upside, 23,200-23,220 is likely to act as an immediate hurdle. A sustained move above 23,220 could trigger a minor recovery towards 23,350 marks; that stated, the broader structure stays negative," stated Sudeep Shah, Vice President, Technical and Derivatives Research, SBI Securities.