Nifty trading below 23,000 mark for second day; more correction likely?

The ongoing correction in the Indian equity market brought Nifty to its six-month low on Tuesday. In fact, Nifty is trading below the key 23,000 mark for the second consecutive session today. The 50-stock index fell to a fresh low of 22,569 in early deals amid negative global cues. On April 7 this year, Nifty slipped below the 23,000 mark. Since then, it has traded above this key level. 

The Nifty correction comes amid relentless selling by FIIs.

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FIIs remained net sellers for the third consecutive session, offloading equities worth over Rs 5,353 crore on September 28, 2026. Till date, FIIs have sold equities worth over Rs 2 lakh crore in the Indian market in lieu of higher returns from its global peers. 

In the current session, Nifty hit a six-month low of 22,569 level. The index slipped below today's low on April 6 this year when the index touched 22,542. Since then, the index has traded above the 22,542 mark. 

With today's slide, the index is down 13.62% in 2026. Sentiment around the 50-stock index was highly volatile today with NSE VIX-Indian market's volatility index- surging 5.5%. 

The Indian stock market is undergoing a major correction led by factors such as high crude oil prices, West Asia conflict, elevated bond yields and FIIs outflows. 

Crude oil prices were trading above the $107 per barrel mark on Tuesday, denting market sentiment in an economy, which imports over 80% of its total domestic crude oil requirements. 

Here's a look at what analysts said on the outlook of the market. 

Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm said, "On the downside, 22,700 remains the crucial support zone. A decisive break below this level could intensify selling pressure and expose the index to the next support around 22,500. Overall, the near-term technical outlook remains bearish. Although oversold conditions could trigger intermittent pullback attempts, the broader structure is likely to remain under pressure as long as the index trades below 23,000."

In fact, with 14% year-to-date losses in 2026, Nifty looks set to post its worst returns in 15 years. The index posted a loss of 25% in 2011 after FIIs pulled out Rs 2,500 crore from the Indian market. After that, the index posted losses only once. It slipped 4% in 2015. 

Rupak De, Senior Technical Analyst at LKP Securities said, "On the downside, immediate support is placed at 22,650–22,700, below which further correction could extend in the short term. On the higher end, 23,000 is likely to act as a strong resistance and may prove difficult to reclaim.""With momentum indicators entering the oversold zone, a near-term pullback towards 23020 cannot be ruled out. However, the broader trend remains weak unless 23150 is reclaimed. While a break below 22600 appears less likely today, any such move could accelerate the decline towards the 21800 region," said Anand James, Chief Market Strategist, Geojit Investments.