The index opened with a 73-point gap-down amid weak global cues and a spike in crude oil prices, and remained under pressure for most of the session.
A brief recovery attempt in the mid-to-late session failed to sustain, with the index slipping back toward the day’s lows.
Selling remained persistent through the day, although a mild pullback in the final hour helped the Nifty recover nearly 100 points from its intraday low.
Despite the late rebound, the Nifty 50 ended 275 points lower at 23,897, marking a weekly decline of 1.90%.
The past three sessions have seen heightened volatility, with markets reacting to renewed tensions between the US and Iran. Rising crude prices and a weakening rupee further dampened sentiment.
Among index movers, Coal India, Trent, and Hindalco were the top gainers, while IT heavyweights Infosys, TCS, and Tech Mahindra led the losses.
Selling pressure was broad-based, with all sectoral indices closing in the red. Nifty IT, Media, and Pharma were the worst hit, with the IT index plunging over 5% following weak earnings and cautious outlooks from large-cap players such as Infosys.
Broader markets also witnessed profit-booking, with the Nifty Midcap 100 and Smallcap 100 indices declining 1% and 0.90%, respectively.
Going ahead, market sentiment is likely to remain sensitive to geopolitical developments, crude oil price trends, and foreign fund flows.
According to Nagaraj Shetti of HDFC Securities, further weakness could drag the index towards the 23,500 level in the near term, while immediate resistance is seen at 24,100.
Nilesh Jain of Centrum Finverse noted that the Nifty faced resistance near its 50-DMA at 24,285 and slipped below the 24,000 mark on a closing basis. Immediate support is now seen around the 21-DMA at 23,580.
He added that the recent upmove base stands at 23,690, which could be tested in the upcoming expiry week. A cooling in volatility would support a bullish recovery.
Rupak De of LKP Securities said the index faced resistance near the 100-EMA on the daily chart, triggering fresh selling pressure and pushing it below 24,000.
He added that the broader setup appears weak, with the index likely to drift towards 23,500. On the upside, 24,200 remains a key resistance, and a move above this level could improve sentiment.
Nandish Shah of HDFC Securities said the short-term trend has turned weak, with the index closing below its 20-day EMA. Support is seen at 23,790, followed by 23,550, while 24,200 remains crucial for a potential trend reversal.
Dhupesh Dhameja of SAMCO Securities said the index continues to exhibit a negative bias. As long as it trades below 24,200, a sell-on-rise strategy remains preferable, while a break below 23,700 could trigger a deeper correction.
