Technical View: Nifty logs longest weekly losing run since 2020; 23,000 remains key near-term support, say…

According to fresh market updates, The Indian equity market rebounded on Friday on value buying after recent sharp losses, but still ended the week with its longest losing streak in six years as high crude prices pushed up bond yields and boosted inflation concerns.

The recovery on Friday was selective rather than broad-based following Thursday's sharp sell-off, supported by value buying, easing Brent crude prices and positive Asian cues, stated Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

The Sensex advanced 315.20 points, or 0.43 percent to settle at 73,895.74, with 19 of its constituents ending elevated and 11 softer. Through the session, it hit a high of 73,968.05 and a low of 73,477.77, gyrating 490.28 points. The index had eased to an over three-month low in the previous session.

The Nifty rose 77.40 points, or 0.34 percent to end at 23,140.50. As many as 34 Nifty stocks advanced, 15 closed softer and one remained unchanged.

"From a technical perspective, the Nifty managed to hold above the 23,000 psychological backing and recovered from the session's softer marks; that stated, the broader structure stays weak following Thursday's decisive breakdown. The 23,300–23,350 zone is likely to act as the immediate hurdle, followed by the broader resistance around 23,600, while 23,000 stays the key near-term backing," stated Ajit Mishra, SVP – Research, Religare Broking.

The index initially eased towards the 23,000 psychological zone, where buying interest emerged and supported a recovery attempt. The rebound, that stated, remained limited, with the index rising only to the 23,160 region before selling pressure capped the upside.

Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm, stated "23,200 stays the immediate resistance, followed by the 23,300–23,400 zone. A sustained breakout above 23,200 could provide some stability and backing a recovery towards the 23,300–23,400 region. That stated, failure to reclaim these marks could leave the index vulnerable to renewed selling pressure. On the downside, 23,000 stays the crucial psychological backing, followed by the 22,900–22,800 region. The index's recovery from the 23,000 zone indicates buying interest at softer marks, but a decisive break below this backing could further weaken the near-term structure."

"Momentum indicators stay weak, with the RSI hovering around 34 and continuing to stay close to oversold territory. The MACD stays in negative territory, while the histogram additionally stays negative, indicating that broader momentum is still weak despite some moderation in the intensity of selling pressure," he further noted.

Financial stocks faced heavier selling during the week on concerns that proposed insurance commission caps could hurt earnings, while IT stocks declined on concerns over rising US rates and artificial intelligence-related issues.

"Bank Nifty ended on a elevated note while remaining in a broad consolidation range, sustaining above 55,400 throughout the session and attempting to extend buying interest toward 55,800. The index settled above 55,500. On the upside, 55,700–55,800 acts as immediate resistance, while the index needs to reclaim and sustain above 56,000 to stabilize the near-term structure. On the downside, failure to sustain above 55,400 could resume the softness noted today and drag the index toward the 55,000–54,800 backing region. Momentum indicators stay wary, with the RSI at 35. Although edging elevated, it keeps trade below its signal line, indicating weak momentum and persistent selling pressure. The MACD stays below the signal line, while the histogram stays negative, confirming persistent downside momentum," noted Ponmudi R.