10 hrs ago
Indian Stocks Extend Six-Week Losing Streak Amid Global Pressure
India’s main stock index, the Nifty 50, fell for the sixth week in a row.
It moved up and down sharply but ended only slightly lower.
Stock markets around Asia also had a difficult and volatile week.
Tensions in the Middle East pushed oil prices higher.
India imports more than 80% of the crude oil it uses, so expensive oil can increase inflation risks.
The US Federal Reserve and Bank of Japan also raised interest rates.
Strong company earnings were not enough to make investors feel confident.
Analysts say the market could recover, but investors should remain careful until global pressures and foreign selling ease.
The Nifty 50 fell 0.22% during a holiday-shortened week, extending its losses to six straight weeks.
The index fluctuated by more than 500 points and ended below the key 23,500 level.
Middle East tensions and elevated crude oil prices added to pressure on global and Indian equities.
The US Federal Reserve and Bank of Japan raised interest rates amid concerns about inflation.
Analysts identified 23,000–23,100 as key support and 23,400–23,600 as a major resistance zone for the Nifty.
- Who
- Indian equity investors, foreign institutional investors, the Nifty 50, and analysts including Vinod Nair, Ajit Mishra, and Rupak De.
- What
- The Nifty 50 recorded its sixth consecutive weekly decline, falling 0.22% amid continued market volatility.
- Where
- India’s stock market, centered on Dalal Street, amid wider weakness across major Asian markets.
- When
- During the reported holiday-shortened week.
- Why
- Elevated crude prices, Middle East tensions, global interest-rate increases, persistent foreign investor selling, and weak overseas investor interest pressured sentiment.
Cautious outlook
Conditional recovery outlook
Near-term market direction
Cautious outlook
Vinod Nair and Ajit Mishra said unresolved geopolitical risks, foreign investor selling, elevated crude prices, and global rate uncertainty are keeping the recovery fragile and warranting a selective, hedged approach.
Conditional recovery outlook
Rupak De said technical indicators had improved, with the RSI showing a bullish crossover, and suggested the market could see a sustained short-term uptrend if Brent crude remains below $96.
What could trigger improvement
Cautious outlook
A stronger recovery may require easing external pressures and a revival of foreign flows, according to Vinod Nair.
Conditional recovery outlook
Ajit Mishra said a sustained Nifty move above 23,600 would strengthen the recovery, while Rupak De said the index could move toward 23,550 in the near term.
Key facts
- Weekly Nifty move
- Down 0.22%
- Losing streak
- Six consecutive weeks
- Nifty closing level
- Below 23,500
- Weekly volatility
- The index fluctuated by more than 500 points
- India’s crude imports
- More than 80% of requirements
- Key support
- 23,000–23,100
- Key resistance
- 23,400–23,600
Quotes
Rupak De
Senior technical analyst at LKP Securities
“Besides, the index is seen consolidating around the previous swing low.”
livemint.com
Sources
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