The benchmark Nifty 50 index extended its decline as market sentiment remained weak. The index has moved further away from its 200-day moving average (DMA) as selling pressure intensified.
After opening on a weak note, the market continued to slide for most of the session. Intermittent intraday recoveries were largely used as sell-on-rise opportunities by traders.
The Nifty closed at an 11-month low, slipping below the 23,200 mark for the first time since April 7, 2025. The index ended the day lower by 488 points at 23,151.
The Nifty 50 index has declined over 5% last week, making it the worst week for the market in the last four years. The previous instance of the index falling more than 5% in a week was in June 2022.
As a result of the sharp market decline, BSE-listed companies have cumulatively lost ₹20 lakh crore in market capitalisation this week. Since the start of the West Asia conflict, the market capitalisation of BSE-listed firms has eroded by more than ₹33 lakh crore.
Going ahead, market direction is likely to remain sensitive to developments in the West Asia conflict, movements in crude oil prices and trends in foreign fund flows.
Sustained foreign outflows and elevated oil prices could keep sentiment cautious, while any signs of easing geopolitical tensions may provide relief to markets.
According to Nagaraj Shetti of HDFC Securities, the underlying trend of the market remains sharply negative.
Shetti said there is a higher possibility that the Nifty could witness a minor pullback from near the lows of around 22,900 by next week.
If the index fails to show such a rebound, further weakness towards the 22,500 to 22,000 levels may be seen in the near term. Immediate resistance is placed at 23,500.
In the short term, the trend may continue to remain weak, with any rise likely to face selling pressure, said Rupak De of LKP Securities.
De added that on the downside, the index could slip towards 23,000 or 22,800, while resistance on the upside is placed at 23,400.
Dhupesh Dhameja of SAMCO Securities said the index has bounced from the 24,300 demand zone and is now approaching immediate resistance near 25,080.
He added that the overall structure suggests the index could witness a pullback towards the 25,080 to 25,320 zone if it sustains above 24,500, while a break below this level may expose the index once again to downside risk towards 24,300.
