On Monday, Indian equity indices finished in the deep red, fueled by global market fears of a US recession. At the close, the Sensex slid 2,222 points, or 2.74 percent, to 78,759 while the Nifty fell 662 points, or 2.68 percent, to 24,055.

The Bombay Stock Exchange's (BSE) market capitalization fell to Rs 441 lakh crore from Rs 457 lakh crore in the previous trading session, resulting in a Rs 16 lakh crore value loss for investors.

Selling was observed in midcap and smallcap equities. The Nifty Smallcap 100 index dropped 858 points, or 4.57 percent, to 17,942, while the Nifty Midcap 100 index down 2,056 points, or 3.55 percent, to 55,857.

According to traders, "Taking cues from the global market, the domestic market closed on a negative note, the correction was primarily driven by disappointing US job data which caused worries about a potential recession in the US as the unemployment rate reached 4.3 per cent, while there are fears of a reverse carry trade in Yen after a rate hike by the Bank of Japan and further, escalating geopolitical tensions in the Middle East."

All indexes ended in the red. The PSU Bank, Metal, Realty, Energy, Infra, Auto, and IT indexes all experienced significant declines. Twenty-eight out of thirty equities on the Sensex finished in the red.

Tata Motors, Tata Steel, SBI, Power Grid, Maruti Suzuki, JSW Steel, Infosys, L&T, and Tech Mahindra were the biggest losses. HUL and Nestle were the only companies to finish in the green.

Rupak De, Senior Technical Analyst at LKP Securities, stated, "Nifty dropped back into the ascending channel on a daily basis due to significant selling during the day. On the bottom end, Nifty found early support near the 50EMA before finishing marginally higher."

"The RSI is in bearish crossing and dropping. Sentiment is expected to continue poor in the immediate future, possibly falling further below 23,900. Support is set at 23.900/23.700. On the higher end, resistance is seen at 24,200/24,500," he said.