Stock market crash today: The Nifty 50 has experienced a significant decline, with the index dropping over 7%, or 1,899 points, in less than a month from its all-time high of 26,277. This sharp fall has shifted market sentiment towards the ‘bears.’ The index has broken both short- and medium-term support levels and is now trading below its 100-day moving average (DMA) of 24,565.
If the index fails to sustain above the 24,500 mark, technical analysis suggests it could drop further to the 200-DMA, which is at 23,365. A 38.2% Fibonacci retracement from the April 2023 bull-run, when the Nifty was at 17,500, indicates that the index could test support at 22,920, about 400 points below the 200-DMA.
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In a worst-case scenario, the index could fall to 20,846, a 61.8% retracement from its recent high. The 20-DMA and 50-DMA are short-term indicators, while the 100-DMA serves as a medium-term gauge for market trends.
Several major stocks, comprising 58% of the Nifty 50, are trading below their 100-DMAs, including Reliance Industries, SBI, HUL, L&T, and TCS. The broader indices like Nifty MidCap 150 and Nifty SmallCap 250 are also below their 100-DMAs for the third consecutive day.
