The index opened 133 points lower and remained under sustained selling pressure through the session, eventually closing near the day’s low. There were no meaningful signs of recovery during the day, with intraday bounces failing to hold.
The rupee’s continued weakness against the dollar, elevated crude oil prices, and persistent FII outflows continued to favour the bears. The Nifty is now trading below its 21-hour EMA, signalling sustained short-term bearish momentum.
The index plunged 486 points, or 2.09%, to close at 22,819, marking its fifth consecutive weekly decline. The last such extended losing streak was seen between July and August last year, when the index fell for six straight weeks.
As many as 35 stocks on the Nifty 50 ending the week in the red. Broader markets mirrored the trend, as over 2,200 stocks on the NSE declined on Friday, while only around 280 advanced.
The Nifty Midcap index fell 1.3% for the week, while the Smallcap index declined 0.6%.
Investor wealth eroded sharply, with BSE-listed companies losing nearly ₹10 lakh crore in market capitalisation on Friday as the Nifty 50 dropped close to 500 points.
Looking ahead, Monday’s session will see the monthly options expiry for NSE contracts, as markets remain shut on Tuesday for a holiday.
Nagaraj Shetti of HDFC Securities said the underlying trend of the Nifty has turned sharply negative following the recent pullback rally.
He expects further weakness towards 22,450 and lower in the coming week, with positional support seen at 22,000 and immediate resistance at 23,200.
Rupak De of LKP Securities said that given prevailing uncertainties, a sell-on-rise strategy may remain appropriate in the near term.
He added that any rebound towards 23,500 could face selling pressure, as the level is likely to act as immediate resistance. On the downside, a break below 22,800 may trigger further weakness.
Vinay Rajani of HDFC Securities said that the recent swing high of 23,465 now acts as a key resistance, and a move above it could trigger short covering. On the downside, the swing low at 22,471 offers near-term support.
