Daijiworld Media Network - Mumbai
Mumbai, Jul 12: The Indian equity market ended the week on a bearish note, with benchmark indices Nifty 50 and Bank Nifty closing lower for the third straight session on Friday, weighed down by weak IT earnings and renewed global trade tensions.
The Nifty 50 settled at 25,149.85, down 0.81% on the day and 1.22% over the week, slipping below key technical support at 25,330.
Market sentiment took a hit after Tata Consultancy Services (TCS) reported underwhelming Q1 earnings, sparking a broad-based selloff in IT stocks.
Additionally, fresh tariff threats from the US President rattled global investors, adding to the risk-off mood.
According to Mandar Bhojane of Choice Equity Broking, the index has entered a short-term correction phase. “Nifty has breached its previous swing low, and is now approaching a crucial Fibonacci support level near 25,000. While the overall bullish structure remains intact, traders should remain cautious in the short term,” he said.
The Relative Strength Index (RSI) for Nifty slipped to 48.75, signaling weakening momentum. A decisive rebound above 25,330 could revive bullish sentiment, potentially targeting 25,670–26,000, Bhojane added. On the downside, a break below 25,000 could drag the index towards 24,750.
The Bank Nifty closed at 56,754.70, down 0.49% for the week. The index formed a bearish candle pattern, indicating persistent selling pressure and reluctance among buyers at higher levels.
“The weekly chart suggests rejection at the upper end, as Bank Nifty failed to sustain above the critical 57,000 mark,” Bhojane observed. He noted that the long upper wick and steady volumes reflect likely consolidation or a mild pullback in the near term.
With volatility expected to persist, analysts advise a sell-on-rise strategy with strict stop-losses in place to navigate potential downside risks.