What is the story about?
The Nifty 50 index opened with a downside gap of 52 points and quickly showed further weakness after the opening bell. A minor recovery attempt in the mid-session failed, leading the market to slide further towards the close.
This marked the Nifty’s sixth consecutive weekly decline, its longest losing streak since March 2020, with a cumulative loss of 4.97% over the period.
On the final trading day of the week, selling pressure intensified, dragging the index down 232 points to close at 24,363, its lowest level in three months.
In an otherwise weak market, a few stocks managed to show relative resilience. NTPC, Titan, and Dr. Reddy’s Laboratories led the list of top performers on the Nifty, while IndusInd Bank, Bharti Airtel, and Adani Enterprises
ended as the major losers.
All sectoral indices closed in the red, with Nifty Realty, Consumer Durables, Metals, and Auto falling the most, underscoring the broad-based nature of the sell-off.
The broader market also took a hit, with the Nifty Midcap 100 tumbling 1.64% and the Nifty Smallcap 100 shedding 1.5%.
Meanwhile, both foreign and domestic institutional investors were net buyers in the cash market on Friday.
Nagaraj Shetti of HDFC Securities said: “The underlying trend of the Nifty remains weak. The next
lower levels to watch are around 24,200-24,000 for next week. Any pullback towards the hurdle of 24,500 could be a sell-on-rise opportunity.”
Rupak De of LKP Securities said: “The Nifty failed to sustain above the 50 EMA on the hourly chart and closed below the crucial support of 24,400, indicating strong selling pressure. The lower-top, lower-bottom pattern suggests the short-term trend remains weak, with potential downside towards 24,150-24,200. On the upside, resistance lies at 24,475-24,500.”
Nandish Shah of HDFC Securities said: “The Nifty breached yesterday’s low of 24,344, giving up all of the previous day’s recovery. It has now closed decisively below its 100-day DEMA at 24,590, after already breaking below its 20- and 50-day DEMAs earlier. This signals a positional downtrend. The next significant support is in the 24,150-24,200 zone, where the 200-day DEMA, a price gap, and Fibonacci retracement levels coincide. On the upside, resistance is seen at 24,500-24,600.”
Nilesh Jain of Centrum Broking said: “The Nifty has extended its losing streak to six weeks, slipping below the 100-DMA at 24,500, which now acts as an immediate hurdle. The 200-DMA at 24,050 is expected to offer near-term support. The overall trend will stay weak as long as the index trades below 24,800, with any pullbacks likely to face selling pressure.”
This marked the Nifty’s sixth consecutive weekly decline, its longest losing streak since March 2020, with a cumulative loss of 4.97% over the period.
On the final trading day of the week, selling pressure intensified, dragging the index down 232 points to close at 24,363, its lowest level in three months.
In an otherwise weak market, a few stocks managed to show relative resilience. NTPC, Titan, and Dr. Reddy’s Laboratories led the list of top performers on the Nifty, while IndusInd Bank, Bharti Airtel, and Adani Enterprises
All sectoral indices closed in the red, with Nifty Realty, Consumer Durables, Metals, and Auto falling the most, underscoring the broad-based nature of the sell-off.
The broader market also took a hit, with the Nifty Midcap 100 tumbling 1.64% and the Nifty Smallcap 100 shedding 1.5%.
Meanwhile, both foreign and domestic institutional investors were net buyers in the cash market on Friday.
Nagaraj Shetti of HDFC Securities said: “The underlying trend of the Nifty remains weak. The next
Rupak De of LKP Securities said: “The Nifty failed to sustain above the 50 EMA on the hourly chart and closed below the crucial support of 24,400, indicating strong selling pressure. The lower-top, lower-bottom pattern suggests the short-term trend remains weak, with potential downside towards 24,150-24,200. On the upside, resistance lies at 24,475-24,500.”
Nandish Shah of HDFC Securities said: “The Nifty breached yesterday’s low of 24,344, giving up all of the previous day’s recovery. It has now closed decisively below its 100-day DEMA at 24,590, after already breaking below its 20- and 50-day DEMAs earlier. This signals a positional downtrend. The next significant support is in the 24,150-24,200 zone, where the 200-day DEMA, a price gap, and Fibonacci retracement levels coincide. On the upside, resistance is seen at 24,500-24,600.”
Nilesh Jain of Centrum Broking said: “The Nifty has extended its losing streak to six weeks, slipping below the 100-DMA at 24,500, which now acts as an immediate hurdle. The 200-DMA at 24,050 is expected to offer near-term support. The overall trend will stay weak as long as the index trades below 24,800, with any pullbacks likely to face selling pressure.”
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