The Nifty 50 dropped from around 25,800 to the 25,400 area. It first moved toward 25,550, then fell to a low of 25,388. This was a decline of more than 400 points.
The video covers an “Alternate Scenario” using Elliott Wave analysis. It reviews how the index entered the 25,550 zone. It then looks at whether this drop creates a possible buying setup, or if the market may see a deeper correction.
Alternate Scenario Key Levels
The video also includes a technical review of Nifty, Bank Nifty, Indigo, Bitcoin, MCX Silver, and Comex Gold. The content is presented by Abhishek H. Singh, a financial analyst with over 10 years of experience in Elliott Wave Theory.
Nifty has just fallen more than 400 points, sliding from the 25,800 range to near 25,388. This move caused strong panic in the market. For us, however, it matched the predicted alternate scenario and brought the index into a key support zone. The main question now is simple: is this a good buying opportunity, or the start of a much bigger fall?
For derivatives traders, the clearest sign of rising fear is the India VIX. It has jumped more than 25% in the last week and is now near 17.5. This rise from the calmer sub-14 levels seen in January 2026 means option premiums are now much higher. That can make option selling more rewarding, but it also increases risk if volatility keeps rising.
Institutional flows also show pressure. Foreign investors have been net sellers, pulling out about ₹15,000 crore from Indian equities over the last ten trading sessions. This selling has been a key driver of the recent drop. At the same time, domestic institutions have absorbed much of that selling. This has helped support the market around the 25,400–25,500 levels.
Derivatives Flows And Risk Signals
Derivatives data shows the Nifty Put-Call Ratio has fallen to 0.80. This points to bearish sentiment that may be getting stretched, and suggests the market could be oversold in the short term. There is also a large build-up in open interest in 25,500 strike puts, which should now act as an important support level for the upcoming weekly expiry. On the upside, the 26,000 strike has the highest concentration of call writers, creating a strong resistance zone.
In 2025, the market saw a similar sharp pullback of about 3% in August. It then consolidated and later moved higher into year-end. In many bull markets, these fast corrections have often created buying opportunities. The key difference this time is higher concern about global inflation data, especially from the United States.
This weakness is not limited to Nifty. Bank Nifty has also broken below its key 56,000 support level, adding to the overall decline. With equities under pressure, safe-haven assets like Gold and Silver are seeing renewed demand. Comex Gold is moving back toward $2,100 per ounce as traders hedge against uncertainty.
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