Broader markets underperform, extend losing streak to third week

New business data points to the fact that The broader markets remained under pressure during the week, extending their losing streak for the third consecutive week. The Nifty Midcap 100 declined 2%, while the Nifty Smallcap 100 declined nearly 1%. Both indices underperformed the key market indices amid a weak market environment, weighed down by sustained foreign institutional selling, elevated oil price marks, elevated bond yields and persistent geopolitical uncertainty.

For the week, the BSE Sensex shed 399.22 points, or 0.53%, to 73895.74, while the Nifty 50 declined 205.9 points, or 0.88%, to 23140.5.

Sectoral indices ended mixed with Nifty IT index down 2.4%, Nifty Private Bank shed 1.5%, Nifty Energy index declined nearly 1%, while Nifty Realty further noted 3%, Nifty Consumer Durables, Pharma, FMCG rose 1% each.

The Nifty Midcap 100 index declined 2% during the week, with PB Fintech, One 97 Communications (Paytm), Oracle Financial Services Software, L&T Finance, Container Corporation of India, Adani Total Gas, Tata Investment Corporation falling 7-33%. That stated, Patanjali Foods, Mankind Pharma, ICICI Lombard General Insurance Firm, Phoenix Mills, Steel Authority of India, Oberoi Realty further noted between 4-10%.

The Nifty Smallcap 100 index shed 0.8%, with losers include Ather Energy, Pine Labs, Tata Chemicals, Cholamandalam Financial Holdings, Piramal Finance, CreditAccess Grameen, Capri Global Capital, Central Depository Services, Firstsource Solutions, that stated, gainers were Whirlpool of India, Wockhardt, Bandhan Bank, Welspun Corp, HBL Engineering, Ola Electric Mobility, Brainbees Solutions.

Foreign institutional market participants (FIIs) accelerated their selling the current week, extending their selling streak to five consecutive weeks, as they offloaded equities worth ₹11,490.03 crore. In contrast, domestic institutional market participants (DIIs) continued their buying streak, purchasing equities worth ₹16,398.15 crore during the week.

The total market capitalisation of BSE-listed firms declined by more than ₹2 lakh crore during the week.

Where is market headed?

Sudeep Shah, Vice President – Technical and Derivatives Research at SBI Securities

Going ahead, the 23270–23300 zone will act as a crucial hurdle for the index. As long as Nifty stays below 23300, the broader downward trend is likely to stay intact, with the index potentially moving towards 22800, followed by 22600.

For now, 23300 stays the line in the sand: will Nifty reclaim it to challenge the bears, or will the downside targets come into focus?

Ajit Mishra, SVP – research, Religare Broking

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. With the trend still weak and global macro risks elevated, volatility is likely to stay high, and stock-specific opportunities may keep emerge selectively.

Nandish Shah – Deputy Vice President, HDFC Securities

While the primary trend stays firmly bearish, momentum oscillators are beginning to show signs of positive divergence, hinting at the potential for a short-term pullback or consolidation. On the upside, 23,300 and 23,600 stay firm resistance zones, with the latter coinciding with the breakdown level from the recent flag pattern.

On the downside, immediate backing is noted near 23,000, followed by the critical 22,700 trendline backing derived from the swing lows of June 2024, April 2025 and April 2026. A sustained move above 23,600 would be needed to shift the near-term bias from “sell on rallies” to neutral.