indian stock market Facing a significant selling wave on Friday, October 25, benchmark indices Sensex and Nifty fell by almost 1 percent. The market downturn was driven by global uncertainties, including massive foreign investor outflows, stretched valuations, disappointing September quarter earnings and the upcoming US elections and rising tensions in the Middle East.

sensex It fell below the 80,000 level for the first time since mid-August, finishing at 79,402 points, down 663 points, or 0.83 percent. Chic It fell 218.60 points, or 0.9 percent, to settle at 24,180.80. Meanwhile, mid- and small-cap indexes underperformed, falling around 2 percent each, highlighting the broader market’s fragility.

The market’s decline has almost been erased ₹Market capitalization in a single day with total market capitalization of 9 lakh crore BSEListed companies fall by approx. ₹435 lakh crore ₹444 lakh crore in the previous session.

This marks the fifth consecutive session of losses for Nifty, which has fallen more than 2.5 per cent this week alone and is currently 8 per cent below its all-time high of 26,277.35 measured on September 27. While the decline in October reached 6.5 percent, Nifty has increased by 11 percent since the beginning of the year in 2024 and by 26.5 percent compared to last year.

Essential Market Information and Expert Advice

As Nifty approaches the 200-DMA support level and volatility continues, market experts suggest strategic moves to get through this challenging phase. From selective buying in large-cap financials to cautious accumulation of high-conviction stocks, here’s what analysts recommend for investors in today’s volatile market.

Santosh Meena, Research Manager, Swastika Investmart

Santosh Meena stated that the sharp correction in the Indian market was due to heavy foreign corporate selling due to valuation concerns and the increasing attractiveness of the Chinese market. Weak earning Reports, especially from the consumption sector, point to a slowdown in urban demand and show that this slowdown has also begun to affect financial stocks. Meena also noted the sell-off from high-net-worth individuals (HNIs) and retail investors, who have not seen a correction of this depth in recent times.

Meena suggested that Nifty may test its 200-day moving average (DMA) around the 23,400 level before rebounding after October-end. He predicted continued pressure on mid-cap and small-cap stocks but suggested using the dip to invest in quality large-cap stocks in the financial sector where valuations have become attractive.

Krishna Appala, Senior Research Analyst at Capitalmind Research

Krishna Appala noted that the correction is continuing with volatility high, with Nifty down 7.8 per cent from its last peak and India VIX rising to 14.7. He attributed the broader slowdown to weak demand and high input costs in consumer sectors. automobiles And FMCGThese affected margins. While rural demand could potentially increase due to a strong monsoon, urban markets continue to struggle, putting pressure on sales and profits.

Despite the challenges, private banks have maintained stability, showing stable net interest margins. Appala warned investors to be wary of high P/E stocks due to declines in earnings, noting that expensive valuations could lead to further corrections. With foreign institutional investors (FIIs) offloading ₹97,000 crore in October alone, Appala sees this valuation waiting period as an opportunity for gradual accumulation in high-conviction stocks as the market stabilises.

Diwakar Rana, Prudent Equity Fund Manager

Diwakar Rana emphasized that the recent market enthusiasm has decreased and it is under pressure. FII Quarterly results were disappointing and disappointing. Weak earnings in the consumer sector, hit by urban and rural slowdowns, led to a severe selloff. The banking sector also faced rising non-performing assets (NPAs), rising losses and lower profits as firms reported higher provisions.

But for Rana, this challenging period presents an opportunity for bottom-up, value-oriented investors. He noted that many growth-oriented companies are now trading at attractive valuations, making it an opportune time for investors to selectively buy stocks with long-term potential.

Technical Analysis

Aditya Agarwal, Head of Derivatives and Technical Analysis, Sanctum Wealth

Aditya Agarwal observed that the market continues to face selling pressure and important support levels have been broken. Nifty fell below 24,100 in intra-day trading and fell to 24,073, before closing the gap in the last hour pushing it to close at 24,180. Agarwal opined that Nifty’s 24,000 level will act as a strong support due to significant sell posts. On the upside, resistances at 24,400 and 24,500 may prevent the rise in the near term. He suggested that a pullback could be on the horizon, with most technical indicators being in oversold territory, with the index potentially rising towards 24,350 or 24,440 levels.

Vishnu Kant Upadhyay, Vice President – Master Capital Services Research and Consulting

Upadhyay observed that Indian benchmark indices fell sharply on Friday, with Nifty50 falling by over 300 points and Sensex by around 900 points. This decline was largely due to weaker-than-expected quarterly earnings, continued foreign investor outflows and serious violations of the 100-day EMA in both indexes. This technical break, which occurred a few days ago, increased selling as short-term investors exited their positions. Major oscillators also turned bearish, indicating increasing technical difficulties with the potential for further price corrections in the near term.

In summary, although the current environment suggests caution, analysts see this downturn as an opportunity for selective investments. The recovery potential remains as benchmarks like Nifty test critical support levels. The prevailing view among experts is that although short-term volatility may persist, long-term investors can take advantage of this correction to build positions in high-conviction stocks.

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms and not Mint. We recommend investors consult certified experts before making any investment decisions.