Market Meltdown Raises Survival Questions for Bulls

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The 23100 level for Nifty becomes extremely crucial over the next few sessions. A decisive break below this zone would technically negate the recent recovery rally.

By S. JHA

Mumbai, May 12, 2026 — Indian markets slipped into panic mode on Tuesday. Despite a net buy of over ₹6,000 crores from institutions, the Indian markets dived deeper. Technically, the Indian markets have entered into a dangerous phase. If the bulls fail to defend key pivots, analysts warn that bears will hunt them down to raise a spectre of a brutal selloff.

The Indian markets opened gap down on Tuesday even while the Asian indices were trading with positive bias. The immediate cue signals that the markets had India specific worries to deal with.

Prime Minister Narendra Modi in the course of two days had spoken of measures such as work from home, online classes for schools, shunning gold purchases, etc. The markets seem to have pressed the panic buttons.

Even while the rupee went crashing, the IT stocks, which otherwise react positively to weakening of the Indian currencies, went under the hammer. The IT heavyweights were mauled by bears. They bled majorly during the day’s trades.

Barring oil and gas sector and select stocks, the bloodbath on the Dalal Street was broad-based. The second half of the trade only accelerated the risk-off. Heavy institutional buying led by the domestic firms failed to step the rot. That signals the retail investors pressing the panic button per market participants.

Angel One in a market note said: “The recent sell-off has erased more than 50 percent of the rally witnessed from the April swing low near 22182 to the recent high around 24600, and considering the current momentum, further downside cannot be ruled out in the near term.”

The brokerage firm stressed that “technically, the 61.8% retracement of the April rally, placed around the 23100 mark, now emerges as the next crucial support. The ongoing retracement is occurring with strong negative momentum, increasing the probability of a breakdown below this support.”

“The 23100 level becomes extremely crucial over the next few sessions. A decisive break below this zone would technically negate the recent recovery rally and could open the doors for further weakness in the near term,” warned Angel One.

It argued that “if the bulls are to stage a comeback, defending this support would be pivotal. Below 23100, the next important retracement support is placed around 22700, which coincides with the 78.6% retracement of the April rally.”

On the upside, the bearish gap around 23700, followed by another gap near 24000, is expected to act as immediate resistance, said the brokerage firm.

(Disclaimer: This article is only for informational purposes. Please consult SEBI registered advisors for investment decisions.)