The index opened 28 points higher and traded in a narrow range for most of the session before recovering around 142 points from its intraday low. Despite Friday’s gains, the Nifty posted its seventh consecutive weekly decline, falling 0.88% over the week. The index has now corrected more than 1,750 points from its early-August swing high of 24,772.
Axis Bank, Asian Paints and M&M were the top Nifty gainers, while Max Healthcare, Tata Motors Passenger Vehicles and Infosys ended among the biggest losers.
Sectoral performance was mixed, with Consumer Durables, Realty and Auto leading the gains, while Healthcare, Media and IT were the top laggards.
The broader market also remained mixed. The Nifty Midcap 100 declined 0.14%, while the Nifty Smallcap 100 gained 0.15%.
The Indian rupee strengthened 15 paise to close at around 95.81 against the US dollar, tracking gains across major Asian currencies. The currency was also supported by softer crude oil prices amid optimism around potential US-Iran ceasefire talks.
What to watch next week
Markets are likely to remain sensitive to crude oil prices, global bond yields and developments in West Asia. Uncertainty around the Strait of Hormuz and Saudi-Houthi tensions could keep energy prices volatile, while any progress towards a phased reopening of the route could provide relief to markets.
Friday’s recovery was selective rather than broad-based and followed the previous session’s sharp sell-off. Value buying, easing Brent crude prices and positive Asian market cues supported the rebound.
Globally, China’s official and Caixin purchasing managers’ indices, US consumer confidence and JOLTS job openings, along with the eurozone’s September inflation data, will be key macroeconomic cues. Comments from three Federal Reserve officials and the Bank of Japan’s meeting minutes could also influence expectations around the global rate cycle.
Key levels to watch
According to Nagaraj Shetti of HDFC Securities, a decisive break below 23,000 could trigger further weakness towards 22,600 in the near term. On the upside, a sustainable rebound could face resistance around 23,350.
Osho Krishan of Angel One said 23,000 remains a key support level for the Nifty. A decisive break below this level could accelerate the decline towards the 22,800-22,700 zone, while the 23,280-23,350 range is likely to act as an immediate hurdle. Above this, 23,500-23,550 remains a crucial resistance zone.
Nandish Shah of HDFC Securities sees resistance at 23,300 and 23,600, with the latter coinciding with the breakdown level from the recent flag pattern. On the downside, he sees support around 23,000, followed by 22,700.
Shah said a sustained move above 23,600 would be required to shift the near-term bias from “sell on rallies” to neutral.
Rupak De of LKP Securities said 23,000 remains the immediate support, followed by 22,700, while 23,200-23,300 is the immediate resistance zone. A sustained move above 23,300 could improve the technical setup, whereas a decisive break below 23,000 could resume the downtrend.