Indian Stock Market Crash: Nifty 50 Plunges 400 Points as Expert Warns of Further Downside Risk

Indian equities faced a brutal sell-off today, with the benchmark Nifty 50 index crashing over 400 points and Bank Nifty collapsing nearly 500 points to sink below 145 points. The sudden plunge rattled investors as foreign institutional selling intensified amid weak Asian markets, dragging domestic sentiment into negative territory. While domestic investors continued buying, overwhelming fear and uncertainty gripped trading floors across Mumbai.

Market Meltdown: Nifty 50 and Bank Nifty Bleed
Technical analyst Rajesh Palviya of Axis Securities confirms the market is flashing caution signals. “The Nifty 50 faces stiff resistance between 25,300-25,500 levels,” Palviya stated, noting any failure to hold these levels could trigger more declines. Critical support now lies at 25,000 and 24,900. A breakdown below these marks could send the index spiraling toward 24,500. Technical indicators like the Relative Strength Index (RSI) reinforce this bearish outlook, signaling growing weakness. Bank Nifty mirrored the carnage, plummeting over 500 points as financial stocks bore the brunt of foreign investor exits. This follows sustained FII selling pressure linked to global risk aversion and underperforming regional markets, according to National Stock Exchange data.

Axis Securities Expert Reveals Strategic Stock Picks
Despite the bloodbath, Palviya identified contrarian opportunities. His top recommendation is Jindal Steel & Power, trading near ₹1,005. The stock recently rebounded from strong support at ₹990 with surging volumes, indicating bullish momentum. “Traders should buy with a stop loss at ₹990,” Palviya advised, setting targets at ₹1,085-1,200. Jindal Steel maintains robust support between ₹980-960. Another standout is Ipca Laboratories, breaking out after 6-7 months of consolidation. Currently trading at ₹1,552, Ipca shows bullish reversal patterns. Palviya recommends buying for targets of ₹1,650-1,760, with downside protection at ₹1,500-1,440. Both stocks demonstrate resilience amid sector-wide declines.

Rain Industries Emerges as High-Potential Play
Palviya also spotlighted Rain Industries, trading at ₹161 after a 5-month consolidation breakout. The stock targets ₹170-185 with a positive RSI divergence confirming strength. “For investors seeking value in beaten-down names, Rain Industries offers compelling risk-reward,” Palviya noted. Cement and industrial stocks like Rain have gained attention as infrastructure spending expectations rise, per recent Ministry of Commerce reports.

The market’s violent swing underscores deep-seated anxiety about global growth and capital flight. While Palviya’s picks offer tactical opportunities, the Nifty 50’s breakdown below 25,000 could trigger wider panic. Investors must consult SEBI-licensed advisors, tighten stop losses, and prioritize capital preservation until stability returns. Monitor key supports vigilantly—this storm isn’t over.

Must Know

Why did Indian stock markets crash today?
Heavy foreign institutional selling, weak Asian markets, and technical breakdowns below key support levels triggered panic. Bank Nifty’s 500-point collapse amplified losses across sectors.

What are critical support levels for Nifty 50?
Immediate supports are 25,000 and 24,900. A decisive break below could push Nifty toward 24,500. Resistance remains at 25,300-25,500.

Which stocks does Rajesh Palviya recommend buying?
Palviya advocates Jindal Steel (target ₹1,085-1,200), Ipca Labs (target ₹1,650-1,760), and Rain Industries (target ₹170-185) based on technical breakouts.

What’s the outlook for Bank Nifty?
Bank Nifty faces intense pressure, down 500 points. Sustained FII selling in financials and global banking sector risks could prolong weakness.

Is this a good time for new investments?
Exercise extreme caution. While selective stocks show strength, broad market instability demands strict stop losses and professional guidance. Avoid aggressive positions.

How long might volatility persist?
Volatility could continue until global cues stabilize and FII selling eases. Monitor U.S. Fed policies, crude prices, and Asian market performance for directional clues.