Nifty ends below 24,000 for 4th week of losses

Indian equity indices declined for the fourth straight week, with the Nifty closing below the key 24,000 mark, as elevated crude oil prices and continued underperformance of blue-chip stocks weighed on the market. Analysts expect the Nifty to remain range-bound in the absence of fresh triggers.

NSE's Nifty rose 24.25 points, or 0.1%, to close at 23,897.7 on Friday. BSE's Sensex gained 362.57 points, or 0.5%, to end at 76,515.43. The indices declined 1.15% and 1%, respectively, for the week.

"The Nifty has remained range-bound between 23,600 and 24,400, weighed down by the underperformance of heavyweight stocks over the past few weeks," said Pankaj Pandey, head of fundamental research at ICICI Direct.


Pandey, however, said a turning point may be emerging, as FCNR(B) inflows have helped address a key concern around currency depreciation, potentially supporting stronger FPI inflows ahead.

Nifty's Volatility Index, or VIX - a gauge of fear in the markets - fell 4.9% to 10.78 on Friday, indicating some easing of investor nervousness. Foreign portfolio investors net sold shares worth ₹3,112 crore. Domestic institutions were buyers to the tune of ₹8,930 crore.

Bhavya Shah, technical research analyst at Stoxbox, said the Nifty broke below key moving averages while forming "lower highs and lower lows".

"The breakdown accelerated as the 24,000 mark flipped from support to stiff resistance," he said. "Going ahead, the undertone remains weak with high volatility. Primarily, resistance is observed at 24,000-24,140, followed by 24,270, while immediate support is placed at 23,720-23,570, followed by 23,410." Elsewhere in Asia, Japan rose 1.3%, Hong Kong advanced 1.7%, South Korea gained 1.6%, and Taiwan rose 1.5%, while China declined 0.3%. The pan-European Stoxx 600 was up 0.1% at the time of going to print.

The Nifty Midcap 150 fell 0.2%, while the Nifty Smallcap 250 rose 0.2% on Friday. Of the 4,618 stocks traded, 2,388 advanced and 1,991 declined. The midcap index fell 1.4% during the week, while the Smallcap 250 declined 0.1%.

"In the near term, the Nifty may continue to lag the broader indices, with mid- and small-caps likely to outperform until large caps regain momentum," said Pandey. "Over the next 2-3 months, we prefer themes such as real estate, consumer durables, consumption, and select auto and auto-ancillary stocks."