The Nifty extended its losing streak for a second consecutive session on Tuesday, falling 144 points to close at 23,625. After opening 36 points lower, the index remained under pressure through the session and ended near its day’s low.
Despite the weakness in the benchmark, the broader market remained relatively resilient, with overall market breadth positive.
Among Nifty 50 constituents, BEL, Hindustan Unilever and ONGC were the top gainers, while SBI Life Insurance, ICICI Bank and Axis Bank led the decliners.
Sectoral performance was mixed. Media, Pharma and Healthcare emerged as the top-performing sectors, while Financial Services, Private Banks and Oil & Gas were among the biggest laggards.
The broader indices outperformed the benchmark, with the Nifty Midcap 100 and Nifty Smallcap 100 each gaining 0.2%.
The Indian rupee, meanwhile, weakened sharply after holding steady for two sessions, depreciating 33 paise to close at 94.82 against the US dollar. Persistent risk-off sentiment, higher crude prices and aggressive dollar buying weighed on the currency.
Ongoing geopolitical concerns and a lack of supportive foreign institutional investor (FII) flows added to the pressure, with investors also awaiting domestic inflation data and key central-bank policy decisions.
Nifty outlook
Indian equities are likely to remain under pressure in the near term, with weak global cues, elevated crude prices and geopolitical tensions keeping investors cautious. The latest escalation in US-Iran hostilities around the Strait of Hormuz has added to concerns over supply disruptions and energy prices.
Brent crude rose 1.3% to around $99 a barrel, raising concerns over energy costs and inflation.
Investors will track crude oil prices, developments in West Asia and the 18th BRICS Summit in New Delhi on September 12-13 for further cues.
Meanwhile, primary market activity remains strong, with six mainboard IPOs set to open on Wednesday and 12 IPOs scheduled this week, collectively targeting around ₹7,180 crore.
What technical analysts expect
Nagaraj Shetti, HDFC Securities
“The underlying trend of Nifty continues to be weak.” However, with the index finding support around the crucial 23,600 level, there is a possibility of a short-term bounce from the 23,600-23,500 zone, Shetti said.
The immediate resistance is placed at 23,800.
Sudeep Shah, SBI Securities
Shah expects the 23,770-23,800 zone to act as an immediate hurdle. As long as Nifty remains below 23,800, the prevailing bearish trend is likely to remain intact.
A break below current levels could take the index towards 23,500, followed by the next crucial support at 23,350.
On the upside, a sustained move above 23,800 would be needed to ease near-term downside pressure and open the possibility of a relief rally.
Nandish Shah, HDFC Securities
The broader trend remains firmly bearish, with Nifty forming lower tops and lower bottoms while trading below key moving averages. However, the index is now more than 1,050 points below its August swing high of 24,774, bringing the short-term trend closer to oversold territory, Nandish Shah said.
He identified 23,600 as a critical support zone, coinciding with a previous swing low. A decisive break below this level could drag the index towards 23,478 and 23,172.
On the upside, resistance has shifted lower to 23,800, followed by 24,000. Sustained trading above 24,000 would be required to improve the near-term technical setup and trigger a meaningful recovery, he added.
Rupak De, LKP Securities
De said rising crude prices are likely to add to inflationary pressures and have weighed on the index. However, Nifty has found initial support near its previous swing low.
He also pointed to positive divergence in the daily RSI, which could indicate a potential shift in momentum.
According to De, 23,600 remains a crucial support. If Nifty holds above this level, the index could see a recovery towards 24,000 and higher in the short term.
