The benchmark Nifty index ended the September series with the loss of 6.52 percent as it corrected from the recent highs of above 11,500 to near 10,800 levels. The market halted the positive momentum of the last three series and also wiped out the entire gains of August.

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On Thursday, the market witnessed a sixth straight day of decline to record the biggest losing streak in 7 months. Sensex as down over 1,100 points and Nifty lost more than 300 points, posting their biggest single-day fall in four months.

Indian markets declined in sync with weak global cues. The US markets fell sharply after on weak economic data amid uncertainty on fiscal stimulus.

The sustained rise in COVID-19 infection cases and uncertainty over economic growth also dented investor sentiment. India has recorded more than 58.18 lakh confirmed COVID-19 cases, including 92,290 deaths so far.

“Investors are bombarded by a perfect storm of problems including rising virus infections, new lockdowns, a slowing economic recovery, stalled US stimulus talks and election uncertainty. Investors also fretted that a second wave of coronavirus cases during the northern hemisphere's coming winter will derail the economic recovery,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

The next support for the Nifty is at 10,570 while Nifty may see a slower pace of fall now and may reverse its present downtrend over the next 2-3 days, according to Jasani.

Meanwhile, Bank Nifty ended the September series with the loss of 13.31 percent as it corrected from August settlement of 23,600 to 20,456 levels.

Among other sectors, Nifty Metal fell 16 percent, Nifty Auto declined 9 percent, Nifty FMCG plunged over 7 percent while Nifty Pharma fell over 2 percent. Nifty IT gained 4.6 percent.

“Nifty was fully in control of bears on the last few trading session of the September expiry as every small bounce was being sold. It has been making lower highs - lower lows on daily scale from last six trading sessions and holding well below 50 DEMA,” said Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services Ltd.

Now till it sustains below 11,000 zones, any small bounce could be sold for further weakness towards 10,650-10,600 zones while on the upside medium term hurdle is shifting lower to 11,111-11,250 zones.

Technically, since it is the beginning of new series, option data is scattered at various strikes. Maximum Put OI is at 10,500 followed by 10,000 strike, while maximum Call OI is at 11,500 followed by 12,000 strike. We have seen marginal Call writing in 11,000 and 11,300 strike while Put writing is seen at 10,600 then 10,500 strike. Option data suggests a wider trading range in between 10,300 to 11,500 zones, Taparia added.