Indian benchmark indices extended their losing streak for a third consecutive session on Tuesday as rising crude oil prices and a sharply weaker rupee weighed on investor sentiment. According to technical analysts, the Nifty has entered a weaker phase after slipping below key moving averages and breaking an important rising trendline. Nandish Shah, Deputy Vice President at HDFC Securities, noted that a breakdown below the rising trendline connecting recent swing lows on the daily chart further strengthens the bearish setup. The index closed below its 20-day exponential moving average (EMA) of 24,084 and 100-day EMA of 24,136, while ending near its 50-day EMA of 23,992. Sachin Gupta, VP – Technical Research at Choice Equity Broking, said technical indicators are signalling further weakness, with the Relative Strength Index (RSI) entering a bearish crossover, indicating weakening momentum and suggesting that the market may remain under pressure in the short term.
The Nifty extended its losing streak for the third straight session, shedding 191 points to close at 23,996. The index opened 37 points lower and stayed under pressure throughout the day, eventually slipping below the key 24,000 mark. NSE cash market turnover was also down 2% from the previous session, indicating reduced trading activity. Among Nifty constituents, Bajaj Auto, Nestle and Tata Consumer led the gainers, while Indigo, Dr. Reddy's and Jio Finance were the major laggards. Sector performance remained weak, with only Auto and FMCG managing to stay in positive territory, while Media, Realty and PSU Banks were among the sharpest losers. Broader markets also came under heavy selling pressure, with the Nifty Midcap 100 declining 1.09% and the Nifty Smallcap 100 falling 1.53%. Market breadth weakened after two sessions of improvement, with the BSE advance-decline ratio dropping sharply to 0.53, indicating renewed selling in mid- and small-cap stocks.
Technical analysts believe the Nifty has entered a weaker phase after slipping below key moving averages and breaking an important rising trendline. Nandish Shah from HDFC Securities said the index now appears headed toward the next support zone of 23,750–23,800, while the 24,200–24,300 band is likely to cap any near-term rebound. The index also closed below the lowest level of the past nine sessions, indicating weakening short-term momentum. According to Gupta, the RSI has entered a bearish crossover, indicating weakening momentum and suggesting that the market may remain under pressure in the short term.
Bank Nifty witnessed a sharp breakdown session, ending significantly lower after heavy selling pressure persisted throughout the day, according to Ponmudi R, CEO of Enrich Money. The daily chart reflects a decisive bearish breakdown from the recent consolidation range. On the hourly chart, the Relative Strength Index (RSI) had slipped into oversold territory during the sell-off before recovering to around the 30 mark, although it has yet to show any bullish divergence that would indicate an immediate reversal. The 57,500–57,600 zone, which broke during Wednesday's decline, is expected to act as the immediate resistance. A move above this level could pave the way for the next resistance zone at 57,900–58,000, which the index would need to reclaim to improve short-term momentum.
According to Vikram Kasat, Head Advisory at PL Capital, investors will continue to monitor several domestic and global factors that could influence market direction. Rising crude oil prices continue to remain a key concern for Indian equities, while the Indian rupee weakened sharply, ending 32 paise lower at 96.56 against the US dollar amid a surge in crude oil prices and rising geopolitical uncertainty. Fresh concerns around U.S. tariff rhetoric also weighed on sentiment. Market participants will now closely track oil prices, geopolitical developments, foreign fund flows and the ongoing earnings season for further direction. The combination of rising oil prices, rupee weakness and geopolitical tensions has created a challenging environment for equity markets, with technical indicators suggesting potential further downside in the near term.
