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Stock market recap: Indian equities suffered a broad-based selloff on Thursday, 8 October, as surging crude prices, a weaker rupee and the RBI’s hawkish turn kept investors on edge. The Nifty 50 fell 371.25 points, or 1.64%, to 22,231.80, after hitting a fresh 52-week low of 22,179.90 during the session. The Sensex dropped 1,045.46 points, or 1.44%, to 71,593.24.
Brent crude rose above $104 a barrel on concerns over supply from West Asia, while the rupee weakened past 97 to the dollar and rising US bond yields added to the pressure. Foreign investors sold ₹6,121 crore of shares on Wednesday.
Metals, capital goods, healthcare, and oil and gas stocks bore the brunt of the selloff. IT was the only sector to remain resilient, with TCS gaining about 2.6% ahead of its quarterly results. Adani Enterprises and JSW Steel were among the biggest Nifty losers, while ITC fell more than 4% after a large block deal. Oil-sensitive stocks including HPCL, BPCL and IndiGo also declined sharply.
Market breadth was deeply negative, with 660 stocks advancing, 2,950 declining and 112 unchanged. TCS’s results, due tonight, will provide the first major test of investor sentiment as the earnings season gets underway.
Two stock recommendations by MarketSmith India:
Buy: Netweb Technologies India Ltd (current price: ₹4,715)
Buy: PNB Housing Finance Ltd (current price: ₹1,150)
Indian equity markets suffered a sharp sell-off on Thursday, with the Nifty 50 falling 371.25 points, or 1.64%, to 22,231.80. The index opened at 22,599.05 and remained under sustained selling pressure, touching an intraday low of 22,179.90—a fresh 52-week low.
Selling was broad-based, with Nifty Metal falling 3.55%, Realty 3.16%, Media 2.79%, Oil & Gas 2.52% and Auto 2.49%. FMCG and Pharma declined 2.02% and 2.32%, respectively, while IT was relatively resilient, slipping just 0.08%. Market breadth was deeply negative, with 660 stocks advancing, 2,950 declining and 112 unchanged, an advance-decline ratio of roughly 1:4.5.
The sell-off reflected growing concerns over tighter RBI monetary policy, elevated crude oil prices, persistent foreign institutional selling, and the conflict in West Asia.
The Nifty remains firmly in a bearish trend, with the index forming a lower-high, lower-low structure and trading below its key short-, medium- and long-term moving averages. The break below its previous consolidation zone, following an earlier breach of the rising trendline, further reinforces the negative setup.
The RSI at 27.55 has entered oversold territory, signalling intense selling momentum but also leaving room for a near-term technical rebound. Oversold conditions, however, do not by themselves indicate a trend reversal. The MACD remains firmly negative, with the MACD line at -368.57 below the signal line at -324.60 and a negative histogram of -43.97, confirming continued bearish momentum.
The index also breached its previous swing low of 22,217, falling to 22,180. The 22,200–22,000 zone remains the key near-term support; a decisive break below it could extend the decline towards 21,700–21,600. On the upside, 22,600–22,800 is likely to act as resistance, with any recovery towards this zone potentially attracting fresh selling.
Nifty Bank opened marginally lower at 55,042.90 and briefly touched an intraday high of 55,043 before selling pressure intensified. The index fell to 54,383.15 before a modest late recovery helped it close at 54,515.05, down 540.50 points, or 0.98%.
The index formed a bearish candle with a lower shadow, indicating some buying near the day’s low but continued seller dominance. It remains below all key moving averages, keeping the technical structure weak, while elevated volume of 224.84 million reinforced the decline. A sequence of lower highs also points to a firmly downward near-term trend. Unless Nifty Bank reclaims the 55,000–55,625 zone, rallies are likely to attract selling.
The RSI stood at 36.45, below its average line of 37.84 and approaching oversold territory, signalling weak momentum without yet indicating an extreme condition. The MACD remained firmly below zero, with the MACD line at -629.31 below the signal line at -586.41. The negative histogram of -42.90 confirms that bearish momentum remains intact, although its relatively modest size suggests selling pressure is not accelerating sharply. No bullish divergence is visible. A sustained move in RSI above 40, alongside a bullish MACD crossover, would point to improving short-term momentum.
Immediate support is at 54,380–54,300, around the day’s low and recent swing zone. A decisive break below this range could extend the decline towards 54,000 and then 53,500. On the upside, 55,000 is the first hurdle, followed by the 21-DMA near 55,625. Stronger resistance lies at 56,575–57,040, where longer-term moving averages are clustered.
The near-term bias remains cautious as the index trades below all key moving averages and momentum indicators remain bearish. The RBI’s rate increase, elevated bond yields and continued foreign selling could weigh on banking sentiment, although oversold conditions may trigger short-covering rebounds. A close above 55,625 would improve the outlook, while a break below 54,300 would strengthen the bearish trend.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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MarketSmith India breaks through the market clutter to bring actionable investment ideas into focus. Our founder and legendary investor, William J. O'Neil, studied these trends and formulated the pathbreaking methodology, the CAN SLIM®. For over five decades now, MarketSmith has been successfully delivering great investment ideas based on its investment philosophy.
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