Nifty ends below 24,000 for 4th week of losses
Indian equity markets faced a downturn for the fourth straight week, with the Nifty index retreating under 24,000. A combination of soaring crude oil prices and sluggish leading stocks contributed to the bleak market outlook. Analysts suggest the Nifty is likely to hover in a limited range without significant catalysts.
Indian equity indices slipped for the fourth consecutive week, with the Nifty closing below the crucial 24,000 level as high crude oil prices and persistent underperformance of major stocks dragged the market down. Forecasts suggest the Nifty will remain within a tight range until fresh triggers emerge. On Friday, the Nifty climbed 24.25 points, or 0.1%, to close at 23,897.7, while the BSE Sensex added 362.57 points, or 0.5%, to finish at 76,515.43.
Over the week, the indices slipped 1.15% and 1%, respectively. Pankaj Pandey, head of fundamental research at ICICI Direct, noted the Nifty's trading range between 23,600 and 24,400, primarily driven by weak performance of heavyweight stocks in recent weeks. However, he hinted at a potential turning point, citing FCNR(B) inflows helping mitigate currency depreciation concerns and possibly bolstering Foreign Portfolio Investor (FPI) inflows.
The Nifty's Volatility Index (VIX) dropped 4.9% to 10.78 on Friday, signaling a slight reduction in market anxiety. Foreign portfolio investors sold shares worth ₹3,112 crore, while domestic institutions bought shares amounting to ₹8,930 crore. Bhavya Shah, a technical research analyst at Stoxbox, observed the Nifty breaking below key moving averages while creating lower highs and lower lows.
This shift caused the 24,000 mark to shift from support to significant resistance. In the coming days, volatility is expected to remain high, with resistance levels at 24,000-24,140 and 24,270, and immediate support at 23,720-23,570 and 23,410. In Asia, Japan up 1.3%, Hong Kong rose 1.7%, South Korea gained 1.6%, and Taiwan climbed 1.5%, while China slipped 0.3%.
The Stoxx 600 index in Europe gained 0.1%. On Friday, the Nifty Midcap 150 dipped 0.2%, and the Nifty Smallcap 250 increased 0.2%. Of the 4,618 stocks traded, 2,388 advanced and 1,991 retreated. Pandey expects the Nifty to lag broader indices in the short term, with mid- and small-caps outperforming until large caps regain strength, suggesting themes such as real estate, consumer durables, consumption, and certain auto and auto-ancillary stocks for the near future.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
