Here is some not so good news. Brent crude prices crossed $100 a barrel, US markets are sharply selling off, and the US 10-year bond yield has surged to 4.7%, which is the highest level since January 2025. To add to that the US-listed shares of Infosys have not had a positive reaction to their results either.
For the week to end with gains, the index needs to close above 24,334, which now appears distant as Thursday was the first time since June 11, when the Nifty could not cross 24,000 intraday. Adding to its sequences of lower highs, the index could only muster an intraday high of 23,990.
That 24,000 level now becomes the first level to watch on the upside, followed by the 24,150 mark. On the downside, well, no prizes for guessing, but 23,800 has now become the line in sand for the bulls, as analysts fear a fall back to 23,600 or even 23,500 levels if 23,800 is decisively broken.
While Infosys will be the big earnings reaction to watch tomorrow, the entire IT space will also be in the spotlight due to the AI-led sell-off in the US. Earnings reactions will also come from stocks like IndiGo, Motilal oswal, Mphasis, Suryoday Small Finance Bank, Go Digit, IEX, International Gemmological Institute and others.
The final trading day of the week is no short of earnings action either. ACC, Bank of Baroda, CG Power, CONCOR, CreditAccess Grameen, DCB Bank, Laurus Labs, Jindal Steel, Kfin Tech, Dr. Lal, NTPC, Ramkrishna Forgings, SBI Cards, Shriram Finance, Tata Consumer, V-Mart, Welspun Corp, will all be reporting their results on Friday, along with many other companies.
“Going forward, the 23780-23750 zone is expected to act as an immediate support area for Nifty. A decisive breakdown below 23750 could trigger further weakness, opening the door for a decline towards the 23600 mark. On the upside, the 23980-24000 zone remains a crucial resistance hurdle. A sustained move above this range will be essential for the index to regain positive momentum,” Sudeep Shah of SBI Securities said.
Nagaraj Shetti of HDFC Securities believes that the Nifty is on its way down to crucial support levels of 23,700 – 23,650, which will be a crucial base and could result in a sizeable bounce for the index in the near-term. Immediate resistance is at the 24,000 mark.
The Nifty Bank has been a bigger area of concern as it has very easily managed to violate all supports lower down, enroute to losing 2,000 points, or over 3% already this week. With the index now having slipped below the 57,500 mark, which was the lower end of the range, it could not sustain above 57,000 either, barely managing a close above the 56,500 mark.
For the index to close the week on a high, it needs a close above 58,521, which now appears very distant and could well go on to report its worst weekly performance since March this year.
Vatsal Bhuva of LKP Securities said that the Nifty Bank has closed below its 200-DMA and just about managed a close above its 38.2% Fibonacci retracement level of the rally from 52,833 to 58,696. “The 56,000 mark remains a crucial support level, and a decisive breach could trigger further downside towards lower levels. Traders should maintain a cautious approach and follow strict risk management. Immediate support is placed at 56,200, while resistance is seen near 57,200,” he added.
