- NSE Nifty 50 shows continued weakness amid uncertain global cues and US-Iran conflict
- Index formed bearish candle, slipped to 11-month low, breaching key trendlines and EMA
- Key short-term support lies between 22,700 and 22,400, resistance near 24,303 levels
The NSE Nifty 50 weakness is likely to persist as global cues remain uncertain, analysts said, after the Indian benchmark stock market indices had a rocky last week due to the US-Iran war.
"Index on weekly chart has formed a sizable bearish candle with a lower high and a lower low, signaling continuation of the corrective decline. Index in the process slipped to 11 months low and in the process breached 100 weeks EMA and rising trendline joining the lows of CY23 and CY25.," said analysts at Bajaj Broking Research.
The short-term key support for the index lies between 22,700 and 22,400 levels, while on the flipside, immediate resistance will be found at 24,303.
"Going ahead, market direction is likely to remain sensitive to developments in the West Asia conflict, movements in crude oil prices and the trend in foreign fund flows. Sustained foreign outflows and elevated oil prices could keep sentiment cautious, while any signs of easing geopolitical tensions may provide relief to markets," said Siddhartha Khemka, head of research-wealth management at Motilal Oswal Financial Services.
Bank Nifty
The Nifty Bank index will likely mirrror the wider index's weakness as volatility is expected to remain elevated. "Index on the weekly chart has formed a sizable bearish candle with a lower high and lower low and a bearish gap above its head (57696-57097). Index in the process closed at 6-month low highlighting downward bias," stated Bajaj Broking.
Key support for the index may slip further down to 52,500–51,800 levels in the coming weeks, if it fails to sustain above the 53,600 level. On the upside, the 56,000 level is likely to act as an immediate resistance.
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Market Recap
Indian equities had their worst week since June 2022 as escalating conflict in the Middle East and higher energy prices soured investor sentiments. The Nifty and Sensex ended over 5% lower for the week.
The Nifty 50 closed 488 points or 2.06% lower at 23,151.10. The BSE Sensex shed 1,470 points or 1.93% to settle at 74,563.92. Larsen and Toubro, Hindalco Industries and Tata Steel were the top losers on the benchmark indices
The rupee closed at a record low of 92.46 to the dollar, weakening 26 paise or 0.3%, even as reports said the RBI stepped in to curb volatility.
ALSO READ: Iran War, Crude Oil Prices To Drive Stock Markets This Week: Analysts
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