Profit-booking drags Sensex, Nifty below key support levels at midday; Sensex drops over 700 points to 82,963

Market Overview - The markets experienced a sharp decline, with both benchmark indices falling below critical technical support zones, specifically the BSE Sensex down 771.17 points or 0.92% to 82,963.08 and the NSE Nifty 50 down 218.30 points or 0.85% to 25,601.05 [1][2] Market Sentiment - The Nifty breached the 25,600-mark, which was identified as a crucial support level by analysts earlier in the day [2] - The initial optimism was driven by positive global cues, including a 1.07% rise in the Nasdaq due to an AI partnership between Nvidia and Meta, but domestic profit-booking led to a reversal [2] Market Breadth - The selling pressure was broad-based, with 2,483 stocks declining against 1,447 advancing out of 4,126 stocks traded on the BSE [3] - A total of 102 stocks hit 52-week lows, and 110 stocks were locked in the lower circuit, indicating the extent of the sell-off [3] Sector Performance - The Nifty Bank index fell 532.30 points or 0.86% to 61,019.25, retreating from the breakout zone of 61,700–61,800 [5] - The Nifty Financial Services index declined 276.45 points or 0.97% to 28,182.70, while the Nifty Next 50 dropped 1.05% to 69,592.35 [5] - Mid- and small-cap segments showed relative resilience, with the Nifty Midcap 100 down 0.83% at 59,681.00 and the Nifty Smallcap 100 losing 0.49% to 17,151.70 [5] Individual Stock Performance - Among gainers, ONGC rose 2.51% to ₹271.25, followed by Hindalco at ₹912.35, up 1.46% [6] - On the losing side, Kwality Wall's (India) Ltd was the top decliner, falling 3.14% to ₹28.41, with Trent down 2.97% to ₹4,062.80 [7] Market Dynamics - Despite the overall weakness, 106 stocks reached 52-week highs and 138 hit the upper circuit, indicating some selective buying interest [8] - Traders are closely monitoring whether the Nifty can reclaim the 25,600 level or if further selling will deepen the losses [8]