- Nifty 50 ended higher on Friday but posted fourth weekly decline in a row
- Nifty showed strong selling pressure with support around 23,000–22,900 levels
- Resistance for Nifty is near 23,860, sustaining below keeps bearish bias intact
Indian equity benchmark Nifty 50 ended higher on Friday, but registered its fourth consecutive weekly declines. Amid uncertain global cues owing to the ongoing US-Iran war, analysts expect Nifty's weakness to continue in the short and medium term.
"Nifty, on the weekly chart, formed a Doji candle with long upper shadows, highlighting intraweek volatility. Long upper shadow signals strong selling pressure at higher levels," stated Bajaj Broking Research.
Accordingly, the index will find immediate support around the previous week's low of 23,000–22,900. However, further downside may lead to key support dipping further to 22,700–22,400.
On the upside, 23,860 is expected to act as immediate resistance, and sustaining below the same will keep the immediate bias down, the research firm added.
"Technically, the index continues to show a bearish bias in both the short and medium term, as it is forming a pattern of lower highs and lower lows," it highlighted.
Amol Athawale, vice president - technical research, Kotak Securities also pointed out that the market is still forming lower tops and trading well below short-term moving averages, which is largely negative.
"We are of the view that the short-term market outlook remains weak, and as long as it continues to trade below 23,350, the weak sentiment is likely to persist," he said.
Market Recap
The BSE Sensex rose 0.4% to close above 74,500, while the NSE Nifty 50 increased 0.5% to settle near 23,100 on Friday. Intraday, the 30-stock index rose as much as 1,000 points and the 50-share index rose as much as 1.5% to 23,345. For the week, Sensex and Nifty declined 0.04% and 0.2% each.
Meanwhile, rupee weakened further and fell below 93 a dollar in the trade. The currency continued to depreciate after touching fresh record lows earlier in the session and ended at 93.70 against the greenback on Friday.
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