Benchmark indices extended their losing streak for the third consecutive session, ending the week with a cumulative loss of over 1.5% as investor sentiment remained risk-averse amid ongoing concerns around the broader implications of recently imposed US tariffs.

The Nifty opened on a flat note and largely traded in a narrow band through the session. However, a sharp sell-off in the final hour of trade dragged the index lower, closing near the day’s low at 24,426.85 — down 74 points or 0.3%. On the currency front, the Indian rupee continued its downward trajectory, hitting a fresh all-time low of 88.31 against the US dollar, before settling marginally higher at 88.20 versus the previous close of 87.63.

Sectorally, profit-booking was evident in metals, IT, realty, and auto, which shed between 0.5% and 1.5%. In contrast, pockets of strength were seen in Capital Goods, Consumer Durables, Media, and FMCG, which posted gains in the range of 0.4% to 1%. Broader markets underperformed, with the Nifty Midcap 100 and Nifty Small cap 100 indices declining by 0.57% and 0.39%, respectively.

Nifty Outlook

The index formed a bearish candle with a long upper shadow which maintained lower high and lower low signaling continuation of the corrective decline. Going ahead to pause the current down trend the index needs to start forming higher high and higher low in the daily chart, failure to do so will keep the bias down.

Nifty has immediate support base placed at 24,400-24,350 levels being the confluence of the recent lows and the key retracement area. Index holding above the same will lead to a consolidation in the range of 24,400-24,900. While failure to do so will signal acceleration of decline towards 24,000-23,800 levels being the confluence of the 52 weeks EMA and the previous major lows and the previous major breakout area.

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Bank Nifty Outlook

Bank Nifty formed a doji candle with a long upper shadow and a lower high and lower low signaling continuation of the corrective decline. Bias remains down and only a formation of higher high and higher low in daily chart will signal a pause in the current downtrend.

Bank Nifty has immediate support at 53,200-53,500. Index holding above the same will lead to consolidation in the range of 53,200-54,500. Support is placed at 53,500-53200 levels being the confluence of the 200 days EMA and the low of May 2025.