Introduction
The Indian stock market ended another challenging week on a weak note, with the Nifty 50 closing at 24,837, down 0.9% on Friday, marking its fourth consecutive weekly loss. Despite attempts to regain momentum early in the week, persistent selling near key resistance levels triggered a broad-based decline. IT stocks led the slide, while financials offered selective resilience. As the upcoming week unfolds, traders are closely watching technical support zones, Q1 earnings, and global triggers like the U.S. Federal Reserve policy meeting.
Nifty 50 Weekly Performance: Why Did the Market Fall Again?
The week saw Nifty 50 struggle to sustain gains beyond the 25,250 resistance zone, eventually facing renewed selling pressure.
Nifty 50 chart showing a failed breakout above 25,250 and support holding around 24,700.
The IT sector tumbled nearly 4%, dragged by weak earnings and negative global sentiment in tech stocks. Bajaj Finance, despite posting strong Q1 results, saw a sharp 5% correction due to concerns over MSME asset quality. Small-cap and mid-cap indices mirrored this weakness, falling around 0.5–0.8%, reflecting cautious sentiment across broader markets.
However, the banking sector outperformed, supported by selective buying in stocks like:
- SBI Life Insurance (+2.5%)
- Indian Energy Exchange (IEX) (+9%)
- Trident (+4.7%)
Expert View:
“The market is forming a possible head-and-shoulders pattern, which could deepen bearish sentiment if key supports break. However, 24,700–24,500 remains a strong demand zone, which could attract buyers,” says Sudeep Shah, Head of Technical Research, SBI Securities.
Rahul Ghose, Founder of Hedged.in, added, “Markets remain jittery, but there’s no panic selling. Options data suggests a sideways move with a slight bearish bias for the coming week.”
Quick Reference: Top Gainers & Losers of the Week
| Top Gainers | Weekly Gain (%) | Key Trigger |
|---|---|---|
| Indian Energy Exchange (IEX) | +9.0% | Short covering & demand surge |
| SBI Life Insurance | +2.5% | Positive insurance premium growth |
| Trident Ltd. | +4.7% | Textile sector buying interest |
| Top Losers | Weekly Loss (%) | Key Trigger |
|---|---|---|
| Bajaj Finance | -5.0% | MSME asset quality concerns |
| Infosys & IT stocks | -4.0% | Weak earnings & global sell-off |
| Mid-cap index | -0.8% | Valuation pressure |
Technical Outlook: Key Levels to Watch
The technical picture suggests the Nifty 50 is currently trapped between two crucial zones:
- Support: 24,700–24,500
- Resistance: 25,150–25,250
A close above 25,250 could trigger a short-term rally towards 25,500–25,700, while a break below 24,700 might lead to a deeper slide toward 24,300.
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Caption: Bollinger Bands and moving averages indicate sideways-to-bearish bias for Nifty 50 in the near term.
Dharmesh Shah, Technical Analyst, explains:
“The index is oversold in the short term, making room for a possible rebound. As long as 24,700 holds, buy-on-dips opportunities remain for quality stocks.”
Foreign institutional investors (FIIs) continued mild outflows during the week, while domestic institutional investors (DIIs) provided supportive buying, preventing a sharper fall.
What Will Drive Nifty 50 Next Week?
The coming week is expected to witness range-bound movement with stock-specific actions.
🔹 Domestic Factors
- Q1 earnings from large-cap IT, banks, and select FMCG companies will set the tone.
- IPO activity & dividend announcements could create momentum in mid- and small-cap counters.
- Monsoon progress and rural demand indicators may impact consumer stocks.
🔹 Global Triggers
- U.S. Federal Reserve policy meeting – any hawkish commentary could lead to foreign fund outflows.
- Geopolitical tensions and crude oil price fluctuations will also be closely monitored.
Analyst Insight:
“Healthcare and pharma stocks such as Cipla and Apollo Hospitals are expected to outperform due to defensive buying, while IT and mid-cap growth names could stay under pressure until global tech sentiment stabilizes,” says Rahul Ghose.
Future Outlook: Stay Selective, Be Cautious
Despite the ongoing correction, experts believe the Nifty could be nearing a short-term bottom, provided 24,700 support holds firm. Any bounce may take the index toward 25,000–25,250, but sustained upside needs fresh catalysts from earnings or global relief.
For traders, a sideways-to-volatile strategy remains ideal. For investors, this phase provides a chance to accumulate quality large-caps in financials, pharma, and energy with a long-term horizon.
Bias for next week: Neutral-to-bearish, with opportunities for buying on dips near support zones.
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Caption: Market remains range-bound with selective opportunities in resilient sectors like financials and healthcare.
Quick Summary Sidebar
✅ Nifty closed at 24,837, down 0.9% for the week
✅ Support: 24,700–24,500 | Resistance: 25,250–25,500
✅ Top Gainers: IEX, SBI Life, Trident
✅ Top Losers: Bajaj Finance, Infosys, Mid-cap index
✅ Next Week Focus: Q1 earnings, U.S. Fed policy, crude oil prices
✅ Best Sectors: Pharma & financials for defensive buying
✅ Strategy: Stay stock-specific, buy quality on dips
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Please consult a certified financial advisor before making investment decisions.
