Nifty 50 Drops Nearly 2% as Sensex Closes at 73,123.83 Points
Nifty 50 and Sensex fell nearly 2% last week, raising concerns about market recovery amid geopolitical tensions and fluctuating oil prices.
The Nifty 50 closed down nearly 2% last week, while the BSE Sensex dropped 0.17% to 73,123.83 points. This decline comes amid geopolitical tensions and volatility in crude oil prices, which are keeping investors cautious. The Nifty 50 ended Friday at 22,600 points, marking a year-to-date loss of approximately 13.56%. Analysts are now debating whether the market will see a rebound or if it will continue its downward trend.
Dr. Ravi Singh, Chief Research Officer at Master Capital Services, indicated that immediate support for the Nifty is around the 22,300 mark. He warned that a significant drop below this level could lead to further declines towards 22,000. The 22,850-22,900 zone is seen as a crucial resistance point, with selling pressure likely on any attempts to recover.
Pabitro Mukherjee, Deputy Vice President of Research at Bajaj Broking, noted that a breach below 22,372 could expose the index to lower levels, potentially reaching 22,180. He mentioned that holding above last week’s low could lead to range-bound consolidation between 22,370 and 22,850.
Corporate earnings announcements are set to influence market activity. Infosys, for instance, reported a net profit of ₹7,823 crore for Q2FY27, a 6.23% increase from the previous year. Both Infosys and Kotak Mahindra Bank, which announced a 26% rise in its net profit for the September quarter, are anticipated to be in focus on Monday. Reliance Industries is drawing investor interest following the subscription closing for the Jio Platforms IPO.
Foreign Portfolio Investors (FPIs) ended a three-week selling streak by buying approximately $426 million in equities last week, although the net outflow for October stands at $4.99 billion. The recent buying may provide some temporary support, but analysts believe that FPIs need to increase their purchasing efforts for a sustained recovery.
While some analysts maintain a long-term bullish outlook for the Nifty, caution prevails in the near term as it struggles to rise above the 23,200 mark. A critical support level is noted at 21,800; a breach below this could trigger further selling pressure. In contrast, a recovery above 23,200 could pivot the index towards higher targets of 24,000 or beyond.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
