Stock market outlook this week: The Nifty 50 fell nearly 2% last week, snapping its two-week winning streak as geopolitical tensions and volatility in Brent crude oil prices kept investors on edge. The decline took the index’s year-to-date (YTD) losses to nearly 13.56%, putting it on track for its worst annual performance in over a decade.
Nifty 50 closed 0.39% lower at 22,600 points on Friday, with Nifty Bank declining 1.10%. Nifty Midcap Select fell close to 2.20% on Friday. BSE Sensex was down 0.17% at 73,123.83 points. As we head for a new week, let’s understand whether bulls will stage a comeback on Dalal Street or bears will continue to drag Nifty and Sensex lower.
The Nifty 50 declined nearly 2.36% last week and moved closer to its 200 weeks exponential moving average (EMA). The overall technical structure remains weak, with selling pressure visible across sectors except IT, highlighted Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd.
“Immediate support is placed near 22300, and a decisive breakdown below this zone could trigger further selling towards 22000, a key psychological support level. On the upside, the 22850-22900 zone remains a crucial resistance area, coinciding with the 21 days EMA. As long as the index trades below this hurdle, the strategy remains sell on rise, with recovery attempts facing sustained selling pressure,” explained Ravi.
Nifty 50 has formed a bearish candle with a long lower shadow indicating continuation of the corrective decline for the fourth session in a row.