Domestic equity benchmarks Sensex and Nifty 50 resumed weekly losses, dragged by information technology stocks over a global rout amid AI disruption fears.
The Nifty IT index hit a 10-month low, entering bear market territory. The BSE Sensex fell nearly 1.2% lower to end last week at 82,626.75, while the NSE Nifty 50 settled below 25,500.
The earlier boost from the US-India trade deal faded, while fresh AI-related concerns further dented sentiment, amid fears that Indian IT firms could face stronger competition from US-listed peers. The broader market also came under pressure, as the Nifty midcap and small-cap indices dropped nearly 2% each. The Nifty 50 index on the weekly chart formed a bearish candle which remained contained inside previous week price range signaling consolidation amid stock specific action.
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Going ahead, immediate bias remains down below Friday's gap down area of 25,750, according to brokerages. A follow through weakness will open further downside towards 25,200 and 25,000 levels in the coming weeks. ''Key support is placed at 25,000 being the confluence of the 52 weeks EMA and the 80% retracement of the recent up move. On the higher side, only a move above 25,750 will signal a pause in current decline. While key resistance is placed at last week high of 26,000,'' said Bajaj Broking.
Nifty Bank
On the weekly chart, the Bank Nifty index formed a small bearish candle, which remained contained inside previous week price range, signalling consolidation with corrective bias. Going forward, the index likely to consolidate in the range of 59,500-60,800. Only a move above 60,800 levels will open upside toward the key resistance area of 61,200-61,800 in the coming sessions.
''The overall outlook remains positive and the current breather should be seen as buying opportunities. Immediate support is placed at 59,500-59,200 levels being the confluence of the 20- and 50-days EMA. Volatility is likely to remain elevated amid uncertain global cues,'' said Bajaj Broking. As long as the index is trading below 60,500, a weak sentiment is likely to persist.
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Market Recap
On Friday, the 30-stock index fell over 1,000 points, while the 50-stock index fell 1.3%, eroding all gains after the interim India-US trade deal was finalised. All the sectoral gauges tracked by NSE ended lower, led by the NSE Nifty Metal Index's 3.3% losses. The market breadth was firmly tilted in favour of sellers. Investors' wealth eroded by Rs 7.02 lakh crore in a single session. The Nifty IT index has slumped 13.7% so far in 2026, surpassing 2025's 12.6% drop. The 10 companies in the Nifty IT index have collectively lost about $50 billion in market value in February.
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