'Severe damage done': Sensex falls over 3,000 points in 7 days

Indian markets gave up early gains to settle lower after two fresh cases of coronavirus were detected within the country. One of the new cases was detected in the capital New Delhi, and the other in the Telangana, the government said in a statement on Monday, triggering a selloff in the domestic markets that extended into the seventh day. The Sensex fell over 150 points to close at 38,144, losing over 3,000 points in seven sessions. The broader Nifty settled down 0.62% at 11,132. The Nifty bank index fell by nearly 1% to settle at 28,868.

The Indian rupee slipped to 72.73 against the US dollar at the day's low.

Indian equities had rallied as much as 2.1% earlier in the session on hopes that major central banks would take steps to stabilize financial markets amid the coronavirus epidemic.
"Markets witnessed strong gap-up for the primary half the session but they lost ground and corrected sharply closing sharply within the negative. We continue to maintain that recovery is likely to be shaky and fragile. The index is likely to face stiff resistance near the 11,550 zones. It’s a classical sell-on-rise market and bottom fishing should be avoided for any longs. 10,900-11,000 is that the next support zone on the downside. Severe damage has been done and repair will take considerable time."

"Nifty Bank too witnessed a volatile session and lost all gains and closed the red. The uptrend has been severely fractured and repair goes to require a while. Contra long bets should be avoided especially on a positional basis. Traders should look to have a sell-on-rise approach. The next support zone on the downside for the index is placed near 28,350 zones.
The market witnessed a sharp sell-off from higher levels after a first-half rally which was on the back of pullback rally in Dow futures. The pullback was weak towards 11,400 and news of new coronavirus cases in India led this sharp fall.