49 mins ago
Nifty Extends Losing Streak as Crude and Yields Rise
The Nifty is a group of important Indian company shares.
It fell for the fifth week in a row.
The market recovered some losses on Friday after opening sharply lower.
Investors are worried because oil prices have risen above $100 a barrel.
More expensive oil can increase inflation and make companies less attractive to investors.
Higher interest rates and bond yields may also put pressure on share prices.
Analysts said the market could find support near 23,250 but face resistance around 23,600.
Investors will watch inflation data, the US Federal Reserve and movements in oil, the rupee and bond yields.
The Nifty 50 fell 2.1% for the week, extending its losing streak to five weeks.
The index closed Friday 0.3% lower at 23,389 after recovering from a 1% intraday decline.
Higher crude prices, rising bond yields, rupee weakness and foreign investor selling continued to pressure equities.
Technical analysts identified support around 23,250-23,230 and resistance near 23,600-23,650.
The National Stock Exchange set a ₹1,700-1,785 price band for its IPO, scheduled to open on September 17.
- Who
- Indian equity investors, foreign institutional investors and market analysts, with private banks among the relative outperformers.
- What
- The Nifty 50 extended its decline to a fifth consecutive week, while analysts outlined key support and resistance levels for the next trading week.
- Where
- Indian equity markets, including the Nifty 50 and related midcap and smallcap indices.
- When
- The week ended on Friday; the market will be closed on September 14, and the National Stock Exchange IPO is scheduled to open on September 17.
- Why
- Selling pressure was linked to elevated crude prices, higher bond yields, rupee weakness, valuation concerns and continued foreign institutional investor selling.
Key facts
- Nifty 50 close
- 23,389 on Friday, down 0.3% for the day
- Weekly Nifty decline
- 2.1%, marking five consecutive weekly losses
- Key support
- 23,250-23,230, with further support levels cited near 23,200 and 23,100-23,000
- Key resistance
- 23,600-23,650; a move above 23,620 could open a path toward 23,800
- Crude oil
- Brent crude moved above $100 a barrel and surged toward $110
- Rupee
- Around ₹95.6 against the US dollar
- National Stock Exchange IPO
- Price band of ₹1,700-1,785 per share; subscription opens September 17
- Upcoming market factors
- India’s August CPI and WPI data, the US Federal Reserve policy decision, US retail sales and industrial production data
Sources
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