The Nifty 50 extended its losing streak for a fifth consecutive session on Friday, ending 102 points lower at 23,767, its lowest closing level since June 12, 2026. Despite recovering over 200 points from the day's low, analysts believe the market's short-term trend remains weak, with 23,850 emerging as a crucial resistance level and 23,600 acting as the next key support.
Amol Athawale, Vice President of Technical Research at Kotak Securities, said the market's short-term structure remains weak.
We are of the view that the short-term texture of the market is still on the weak side," he said. According to Athawale, the index could retest the 23,600-23,550 zone in the near term. A decisive break below this support could accelerate selling pressure and drag the Nifty towards the 23,300 mark.
Looking ahead, analysts expect geopolitical developments to remain the primary driver of market sentiment.
Ponmudi R, CEO of Enrich Money, said investor focus in the coming week will remain firmly on the escalating conflict between the United States and Iran, which has fuelled concerns over inflation and global growth after crude oil prices surged. He added that any further disruption to energy infrastructure or shipping through the Strait of Hormuz could trigger fresh volatility across equity, currency and bond markets.
ALSO READ: Week Ahead On D-Street: US Fed Verdict, Q1 Results, Crude Oil Prices To Drive Sensex, Nifty
Meanwhile, Vinit Bolinjkar, Head of Research at Ventura, said investors will also closely track the ongoing corporate earnings season. "Markets will closely eye upcoming corporate earnings and defensive allocation strategies to weather near-term macro headwinds," he said.
Bank Nifty Outlook
Bank Nifty mirrored the Nifty's weak start on Friday, opening lower and extending losses in early trade before witnessing a sharp rebound from intraday lows. The recovery helped the index recoup most of its losses and formed a sizeable bullish candlestick on the daily chart, signalling buying interest at lower levels.
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the rebound also enabled Bank Nifty to reclaim its 200-day exponential moving average (EMA), a key long-term support level closely monitored by market participants.
He expects the immediate resistance for Bank Nifty to be in the 57,100-57,200 zone. A sustained move above this range could extend the recovery towards 57,600, followed by the 58,000 mark in the short term. On the downside, Shah identified the 56,300-56,200 zone as the immediate support area. A breach below these levels could once again invite selling pressure in the banking index.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
