Market Wrap

Indian equities ended the week on a bearish note, with the Nifty slipping over 2.5% its sharpest weekly fall of FY26 and closing below the crucial 24,650 mark. The sell-off was led by healthcare heavyweights, which broke key support levels, signaling sustained sectoral weakness. Global cues offered little relief as Asian markets extended losses, even as European peers managed modest gains. On the macro front, the US Fed’s renewed caution on inflation boosted the dollar, dampening flows into emerging markets. Adding to the pressure, reports indicated September GST collections may ease from recent record highs, clouding fiscal sentiment. Persistent FPI outflows further weighed on investor confidence.

What's Ahead

With Nifty slipping under critical support, traders will watch if the 24,600–24,500 zone can hold to prevent deeper cuts. Sectoral earnings concerns, especially in pharma, alongside relentless FPI selling, may keep volatility high. Globally, the upcoming US PCE inflation data will be pivotal for Fed rate cut expectations, while back home, India’s auto sales numbers will provide key cues on demand resilience.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 extended its losing streak for the sixth straight session, plunging 236.15 points (-0.95%) to close at 24,654.70. Selling was broad-based with 44 of 50 constituents ending in the red, led by heavyweights like HDFC Bank, ICICI Bank, and Infosys. The index opened weak, faced sharp intraday selling, and despite a brief recovery attempt, ended near the day’s low. The RSI slipped below 40, highlighting strong bearish momentum. Immediate support is placed at 24,461/24,342, while resistance lies at 24,848/24,968. Sustained trade below 24,600 could accelerate downside towards the 24,300 zone.

Bank Nifty

Bank Nifty witnessed sharp weakness, dropping 586.85 points (-1.07%) to settle at 54,389.35, with 11 of 12 constituents closing in the red. Heavyweights HDFC Bank, ICICI Bank, and Axis Bank dragged the index lower, while mid-sized banks like Canara Bank, PNB, and IndusInd Bank suffered steep declines of over 2–3%. The index opened firm but failed to sustain intraday gains, slipping below the 54,400 mark. With RSI nearing 40, Bank Nifty is approaching oversold territory. Key supports are at 53,975/53,719, while resistance is capped at 54,804/55,060. A break below 53,700 could trigger deeper corrections.

Sensex

The Sensex tumbled 733 points (-0.9%) to close at 80,426.46, marking a broad-based sell-off with 26 of 30 constituents in the red. Heavyweights including HDFC Bank, ICICI Bank, and Infosys dragged the index sharply lower, while Tata Steel (-2.89%) and M&M (-3.78%) were among the worst hit. A few gainers like L&T and Tata Motors provided some cushion but were insufficient to reverse sentiment. Immediate support is seen at 79,768/79,361, while resistance is placed at 81,085/81,492. The failure to hold 80,400 may keep the index under pressure in the near term.

FINNIFTY

FinNifty dropped 262.15 points (-1.0%) to close at 25,985.25, with 19 of 20 constituents ending in the red, reflecting widespread selling across the financial space. Heavyweights HDFC Bank, ICICI Bank, and Bajaj Finance weighed heavily on the index, while HDFC AMC, REC, and PFC led the declines. Only ICICI Lombard managed a gain, highlighting the sector’s weak breadth. The near-term structure remains fragile with immediate support at 25,780/25,540 and resistance at 26,280/26,520. Sustained weakness below 26,000 may invite further pressure towards 25,500.