Indian equities are witnessing a sharp correction as over 50% of stocks across key indices have slipped below the critical 200-day moving average (DMA). This includes 30 stocks from Nifty 50, 286 from Nifty 500, 61 from Nifty MidCap 100, and 58 from Nifty SmallCap 100. Analysts highlight that this trend signals market weakness, often leading to prolonged consolidation or further downside. Additionally, 75 stocks from Nifty 500 have dropped over 20% since their September 27 peak, indicating bearish sentiment. However, fundamentally strong stocks could find support at the 200 DMA, offering recovery potential.