2 days ago
Nifty, Sensex Extend Record Losing Streak Amid Global Pressure
India’s stock market fell for the eighth week in a row.
Investors were worried because overseas investors kept selling Indian shares.
Higher US government bond yields made investments in emerging markets less attractive.
Oil prices also stayed above $100 a barrel, which increased concerns for India.
The Indian rupee weakened, adding more pressure.
Domestic investors bought shares and helped limit the fall.
Some analysts said the market is very weak but may bounce because it is oversold.
Other analysts warned that prices could fall further if important support levels break.
The Reserve Bank of India may raise interest rates on October 7, which investors are also watching closely.
Nifty and Sensex recorded their eighth consecutive weekly loss as foreign selling and rising global yields pressured Indian equities.
Brent crude remained above $100 a barrel, while the rupee fell to a two-month low.
Foreign portfolio investors sold Rs 9,484.22 crore of Indian stocks on Thursday and about Rs 35,000 crore during the week.
Domestic institutional investors bought Rs 10,041.84 crore on Thursday, cushioning but not reversing the market decline.
Analysts identified 22,200 for Nifty and 71,300 for Sensex as key support levels, with a possible pullback from oversold conditions.
- Who
- Indian equities, foreign portfolio investors, domestic institutional investors, and market analysts.
- What
- Nifty and Sensex posted an eighth consecutive weekly loss amid sustained selling and global economic pressures.
- Where
- Indian stock markets, including the Nifty 50, Sensex, and Nifty Bank.
- When
- During the reported week; the Reserve Bank of India is expected to decide on rates on October 7.
- Why
- Persistent foreign selling, elevated US Treasury yields, crude prices above $100 a barrel, a weaker rupee, possible rate hikes, and heavy IPO issuance weighed on sentiment.
Further downside risks
Potential pullback
Near-term market direction
Further downside risks
Analysts said the market remains weak, with a break below Nifty 22,200 or Sensex 71,300 potentially accelerating selling.
Potential pullback
Other analysts said the market is oversold and a pullback rally from current levels cannot be ruled out.
Nifty resistance
Further downside risks
Axis Direct said gains are likely to remain capped without a sustained move above the 23,300 zone.
Potential pullback
A move above 22,500 for Nifty or 72,200 for Sensex could extend a recovery toward higher stated resistance levels.
Bank Nifty outlook
Further downside risks
SBI Securities said the positional structure remains weak, while a break below 54,000 could extend selling toward 53,500.
Potential pullback
Bajaj Broking said follow-through buying could extend a pullback toward 55,600 and 56,000.
Key facts
- Weekly performance
- Nifty and Sensex recorded their eighth straight weekly loss.
- Foreign selling
- Foreign portfolio investors sold approximately Rs 35,000 crore of Indian equities during the week.
- Thursday FPI flows
- FPIs were net sellers of Rs 9,484.22 crore on Thursday.
- Thursday DII flows
- Domestic institutional investors were net buyers of Rs 10,041.84 crore on Thursday.
- Crude oil
- Brent crude remained above $100 a barrel.
- Expected RBI action
- A Reuters poll indicated a possible 25-basis-point rate increase to 5.50% on October 7.
- Volatility
- India VIX rose 7.12% to settle at 14.45.
Quotes
Amol Athawale
Vice President of Technical Research at Kotak Securities
“On a positional basis, the structure remains weak until sustained follow-up buying emerges. Nifty Bank's fall keeps the near-term trend cautious. Going forward, 54,100–54,000 could act as support; a break below this zone could extend selling pressure towards 53,500. On the upside, 55,100–55,200 could act as an immediate hurdle.”
businesstoday.in
“We also expect the gains in the index to be capped as long as we do not see a sustained move above the 23,300 zone.”
businesstoday.in
Sources
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