Nifty Slips below Key Averages with Sixth Straight Fall

The Nifty index extended its losing streak to a sixth consecutive session, closing at 24,654.70, down 0.95%. The index opened weak and drifted lower throughout the day, forming a long bearish candle on the daily chart. On the weekly scale, Nifty posted a 2.65% decline, reflecting broad-based weakness.

Technical Overview – Nifty

• The index has slipped below both the 20-day Simple Moving Average (SMA) and the 50-day SMA, signaling a short-term setback.
  
  
• Immediate support is placed at 24,500. A breakdown here could accelerate declines toward 24,400.
  
  
• On the upside, the 24,800–25,000 zone now acts as strong resistance. A sustained move above this band would be needed to restore stability.
  
  
• Momentum indicators remain weak:
  
  
  • RSI fell to 39, entering oversold territory.
    
    
  • MACD turned negative with a bearish crossover and red histogram bars.
    
    
• Volatility edged higher, with India VIX up 6.03% to 11.43, indicating nervousness among traders.
  
  

While the near-term structure has weakened considerably, a short-term bounce from oversold levels cannot be ruled out.

Technical Overview – Nifty Bank

The Bank Nifty ended at 54,389.35, down 1.07%, marking a sharp fall with a long bearish candle. The index remained under selling pressure all day, closing well below short-term averages. On the weekly chart, it slipped 1.93%.

• The index broke below the 61.8% Fibonacci retracement at 54,430 and is now hovering near the 78.6% retracement at 54,100.
  
  
• A breakdown below 54,100 could expose further weakness toward 54,000–53,800.
  
  
• On the upside, 54,700–54,800 acts as immediate resistance. A sustained close above this zone would be essential for a reversal.
  
  
• Momentum indicators highlight a weakening structure:
  
  
  • RSI cooled to 41, nearing the oversold region.
    
    
  • MACD widened its bearish crossover, pointing to continued weakness.
    
    
• The index is now well below both the 20- and 50-SMAs, reaffirming bearish momentum.
  
  

The near-term bias remains weak, though the proximity to oversold conditions suggests the possibility of intermittent pullbacks. Unless the index reclaims 54,700, caution is advised.

Market Outlook

Both Nifty and Bank Nifty have slipped below key short-term moving averages, with momentum oscillators confirming weakness. The bias remains sideways to bearish, with support levels being tested. Oversold readings may trigger short-lived rebounds, but any sustainable recovery will depend on reclaiming 25,000 for Nifty and 54,700 for Bank Nifty.