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Indian benchmark indices extended their losing streak for a third consecutive session, as rising crude oil prices, a sharp depreciation in the Indian rupee, and profit booking in heavyweight stocks continued to weigh on investor sentiment. The market opened on a weak note, tracking mixed global cues, and witnessed sustained selling for most of the session,  although it settled below the psychologically important 24,000 mark. At close, the Sensex declined 715.06 points or 0.92% to settle at 76,755.05, while the Nifty 50 fell 191.45 points or 0.79% to close at 23,996.25.

On the sectoral front, performance remained broadly negative. Nifty FMCG emerged as the top-performing sector, gaining 0.65%, followed by Nifty Auto, which advanced 0.18%. Most other sectoral indices ended in the red, with realty, media and Psu bank remain key dragger with continued selling pressure in stocks keeping the benchmark indices under pressure. The broader market also traded with a negative bias, although it showed relatively better resilience than the frontline indices. Profit booking was visible across several midcap and smallcap stocks, reflecting cautious investor sentiment amid rising global uncertainties.

Nifty Outlook

Nifty has formed a sizable bearish candle with a lower high and lower low as it extends decline for the third session in a row. Nifty closed around the 24,000 levels and has formed a lower low on a weekly basis signaling corrective bias. The index in the process closed below the rising trendline joining last two major lows highlighting downward bias. A follow through weakness below Wednesday low 23,961 will open further downside towards recent major low of 23,800 levels. On the higher side 24,200 is likely to act as key hurdle in the coming sessions, only a move above the same will signal a pause in the last three session corrective trend. Overall index to extend consolidation in the range of 23,800-24,350. Only a breakout or breakdown will signal next directional trend in the index. Short term support is placed at 23,800 levels, being the confluence of the almost identical low of the last 5 weeks and 50 days EMA.

Bank Nifty Outlook

Bank Nifty formed a sizable bearish candle with a lower high and a lower low signaling corrective decline for the third session in a row. Index tested the 57,000 levels on Wednesday’s session. Index in the last 6 weeks is seen consolidating in the range of 58,700-56,500. Index in the last three sessions reacted lower from the upper band of the range and is currently approaching the lower band of the recent consolidation. Only a breakout or breakdown will signal next directional trend in the index.

Key support is placed at 65,500 levels being the 20-week EMA and lower band of last six weeks range. A breakdown below the same will open downside towards 55,500 levels in the coming sessions. On the higher side key resistance is placed at 58,700 levels only a breakout above the same could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks.  

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