The market end lower for the third straight day on Thursday, dragged by metal, auto and banks shares.
The Sensex breached the 37,000 level while the Nifty ended below the 10800 mark.
The Sensex slumped 587.44 points or 1.59 per cent to 36472.93, while the Nifty Index plunged 180.95 points or 1.6 per cent to 10737.75. The Nifty has fallen 316.15 points, or 2.86 per cent in three consecutive trading sessions.
"Index again closed a day in red at 10741 with losing 1.62 per cent intraday and formed bearish candle. Index has breached its previous swing low of 10780 zone and closed below same hinting some more pressure may see in coming sessions, also Index has given bearish flag breakdown which is also negative for markets. Now support for Index is coming near 11680-11600 zone and resistance is coming near 11800-11890 zone. The Nifty Bank closed a day at 27034 with loss of near 2.5 per cent, immediate support for the Nifty Bank is coming near 26800-26550 zone and resistance is coming near 27250-27500 zone," said Rohit Singre, Senior Technical Analyst, LKP Securities.
According to experts, the market fell in continuation to prevailing corrective phase. The bias was negative from the beginning but sharp decline in the latter half completely unsettled the bulls. Selling was widespread and mostly sectoral indices ended with a deep cut.
"Nifty has now reached closer to its immediate and critical support of 10750 so we may see some consolidation or pause ahead. We suggest continuing with "sell on rise" approach and focusing more on stock selection now, said Ajit Mishra, Vice President, Research, Religare Broking.
The recent fall is a result of growing uneasiness among the participants as they're keenly awaiting some action from the government to boost the market sentiment. Besides, feeble global cues are further adding to the negativity.
"Despite SEBI relaxing FPI norms and likely stimulus from government to push the economy the market continued its descent. The outlook for auto, consumption and realty are still cloudy, influencing investors to shift to safe haven assets. Rupee fell to near six months low due to continued outflow from foreign funds and weak exports," said Vinod Nair, Head of Research, Geojit Financial Services.