The index opened 37 points higher, supported by positive global cues, and extended its gains in the first half of the session. However, it failed to sustain above the crucial 24,000 mark and gave up more than 100 points from the day’s high. Weakness during the closing auction session (CAS) added to the pressure, with Nifty falling 41 points from its 3:15 pm spot close.
Despite Friday’s recovery, the index ended the week 1.15% lower, marking its fourth consecutive weekly decline.
The week began on a weak note, with sellers dominating for most of the sessions. A sharp gap-down mid-week was followed by attempts from buyers to arrest the decline. However, buying interest remained insufficient to sustain gains at higher levels, leading to profit-taking and keeping the index in negative territory for the week.
Among Nifty 50 constituents, SBI Life, Tata Steel and HDFC Life were the top gainers, while HCL Tech, Bharti Airtel and Maruti emerged as the biggest laggards.
Sectoral performance was mixed, with Metals, Financial Services and Cement among the top gainers, while Realty, Healthcare and Chemicals faced selling pressure.
Broader markets also remained mixed, with the Nifty Midcap 100 declining 0.25%, while the Nifty Smallcap 100 gained 0.22%.
In the currency market, the rupee edged higher against the dollar, extending its recent strengthening streak. The currency appreciated nearly 1% over the week to close around 94.50.
Nifty outlook
Markets could see some relief in the near term amid easing expectations of a US Fed rate hike and softer global bond yields. However, elevated Brent crude prices near $95 a barrel and continued tensions in West Asia remain key risks to any sustained recovery.
Investors will closely track crude prices, developments in the West Asian conflict, global rate expectations and domestic liquidity. The US employment data released on Friday will also be important for assessing the Fed’s policy outlook.
Other key global and domestic triggers next week include the US ISM Services PMI, the ECB’s monetary policy decision, the OPEC Monthly Oil Market Report and India’s foreign exchange reserves, said Siddhartha Khemka of Motilal Oswal.
Technically, the 24,000-24,200 zone remains a crucial resistance area for Nifty. A decisive break below 23,800 could open the path towards 23,600, while holding above this support could lead to some short-term consolidation within the broader downtrend, said Vinay Rajani of HDFC Securities.
Hitesh Rathi of Angel One said the 23,750-23,600 band remains an immediate and crucial support zone. A decisive daily close below this range could trigger a further decline towards 23,450-23,400. On the upside, 24,000-24,050 has emerged as immediate resistance, followed by the 24,150-24,200 zone.
According to LKP Securities’ Rupak De, Nifty remained largely range-bound as traders stayed cautious ahead of the US non-farm payroll and unemployment data, which could have a significant bearing on the Fed’s rate decision.
De said the short-term trend is likely to remain weak as Nifty continues to trade below the 50-EMA on the hourly chart. A sell-on-rise strategy could remain in play as long as the index stays below the 24,000-24,200 zone. On the downside, support is seen at 23,830 and 23,700.
The banking benchmark has also remained in consolidation for nearly 24 sessions, highlighting the prolonged lack of directional momentum. The index closed marginally lower by 0.02% on Friday.
Sudeep Shah of SBI Securities said the 56,900-56,800 zone is a crucial support area. A sustained hold above this region could keep the consolidation phase intact, while 57,800-57,900 is likely to act as immediate resistance. A decisive breakout above 57,900 or breakdown below 56,800 could signal the end of the consolidation phase and trigger a meaningful directional move.
The primary market, meanwhile, remains active, with 11 mainboard IPOs scheduled to open next week and collectively targeting more than ₹7,000 crore. Several companies are also lined up for listing, keeping primary-market activity elevated despite the cautious tone in the secondary market.
