The benchmark Nifty has experienced significant downward pressure, tumbling over 1,500 points or 6% from its high of 24,774 in the first week of August to current levels. According to The Times of India, this represents the fifth consecutive week of negative performance for the index. The Bank Nifty has relatively outperformed frontline indices but has also ended the week on a negative note, forming a bearish candle with lower shadow on a weekly scale. As per ET Now, the Nifty settled at 23,398 on Friday, down around 2% over the week, as a sharp surge in crude oil prices fuelled by escalating geopolitical tensions weighed on market sentiment. The index ended another difficult week on a weak note, falling 499.60 points, or 2.09%, extending its decline to five consecutive weeks and matching the index's longest weekly losing streak of CY2026. However, equity markets are likely to start Friday's trading session on a positive note amid supportive cues from global peers, with GIFT Nifty quoted around 23,345 as of 7:40 AM.
The Nifty has slipped below its crucial short and long-term moving averages, creating a bearish technical picture. As reported by The Times of India, the daily RSI is quoting at 27.66 level and is in falling mode, while the weekly RSI is about to slip below 40 mark and is in falling mode. The MACD histogram is quoting below zero line since last 21 trading sessions. According to Dharmesh Shah, Technical Head- Vice President, ICICI Securities, the Nifty drifted downward on the breach of key support of 23,600 and weekly price action formed a bear candle carrying lower high-low, indicating prolonged corrective bias. The zone of 23,100-23,000 will act as important support for the index, representing the confluence of 61.8% Fibonacci retracement level and prior swing low. If the index slips below 23,000, correction could extend to 22,800 and 22,500 levels. Friday's recovery came after the Nifty tested the lower boundary of a declining channel, bringing the session low of 23,231 into focus as an important near term support. Pabitro Mukherjee of Bajaj Broking notes that the Nifty formed a bullish candle with higher-high and higher-low signaling a pullback from extreme oversold territory on Thursday, indicating potential base formation at lower levels.
According to Dharmesh Shah, Technical Head- Vice President, ICICI Securities, the Nifty's ongoing correction may be nearing an exhaustion phase after a sharp 1,500-point decline over the past five weeks. After a decline of more than 1,500 points over five weeks, supportive efforts have emerged around the price parity of the April-June decline of 1,530 points. As long as the Nifty holds Friday's panic low of 23,200 level, the door remains open for a technical mean-reversion move back toward the 24,000 psychological mark. Only a decisive close below 23,200 would result in extension of decline towards 22,700, being placement of 80% retracement of April-August rally from 22,182 to 24,774. Shah noted that the current corrective leg appears to be entering its final exhaustion phase, supported by several statistical and technical signals including the Nifty's failure to surpass its prior session's high for 13 consecutive trading sessions. There are signs that the recent fall may be overextended in the near term, with the Nifty finishing below the lower Bollinger Band for three consecutive sessions, a reading that often appears after a sharp directional move. Ponmudi R, CEO of Enrich Money notes that the bias for Nifty remains cautious, with scope for a technical rebound if the index sustains above 23,400, with a sustained move above this level potentially opening the way toward the 23,500-23,600 region.
Oversold readings point to a possible technical bounce as momentum indicators reflect the intensity of recent selling. The daily 14 period RSI has moved into oversold territory, while the weekly RSI is now testing the 40 mark, an important zone from a medium term perspective. These readings leave room for a technical bounce, but the larger trend will remain weak unless price starts reclaiming key resistance levels. The immediate resistance area is placed between 23,572 and 23,623, this zone corresponds to the downside gap created on September 9 and is likely to act as the first major hurdle during any recovery. A sustained move above this band would be an early sign of improvement in the short term structure, with the next resistance seen near 23,940. Pabitro Mukherjee emphasizes that the Nifty needs to form higher-high and higher-low on a sustained basis and close above the 23,600 levels being the high of current week and recent breakdown area to signal pause in the current downtrend. The September 9 gap remains the level that needs to be reclaimed before the near term picture improves meaningfully.
In the Bank Nifty, Pabitro Mukherjee notes that the index formed a small negative candle with a long upper shadow which looks like an inverted hammer on Thursday, indicating selling pressure at higher levels and distribution emerging around the 56,500 zone. Bank Nifty failed to sustain above 56,500, resulting in consolidation within the 56,000–56,500 range as the index struggles to build sustained upside momentum. The analyst flags 55,700–55,800 as the immediate support zone, below which the index could resume the broader corrective trend toward 55,200 and 54,800 levels. On the upside, Thursday's high of 56,570 serves as an immediate hurdle, with a recovery toward 57,000 seeming likely above this level. Broader markets showed relative resilience with Midcap and Smallcap indices losing 1.4% and 0.9% respectively, outperforming the benchmark. As reported by ET Now, high-beta sectors like Realty, IT, Metal bore the brunt of the sell-off, while Healthcare stood out as the outperformer. The market decline has been attributed to escalation of war between US and Iran, leading to a sharp surge in Brent Oil prices. The decline in WTI crude from its recent peak offers some relief on the macroeconomic front, but oil prices remain near the $100-a-barrel mark in international markets, which remains high enough to keep investors guarded given the potential impact on India's import bill, inflation outlook and corporate margins.
Emcure Pharmaceuticals has shown strong technical momentum with the stock moving higher steadily on the daily chart, connecting lows of ₹1,679 and ₹1,751 made on 12th June and 17th July respectively. According to The Times of India, the RSI moved higher from 40 on 25th August to 64 on 11th September indicating strong bullish momentum. The stock is recommended for accumulation in the zone of ₹1,965-1,985 with a stoploss of ₹1,905, targeting ₹2,125 in the short term. VA Tech Wabag has given a downward sloping trendline breakout with strong volume support over the last 3 trading sessions, recommended for accumulation in the zone of ₹2,265-2,285 with a stoploss of ₹2,195, targeting ₹2,445. ICICI Securities has recommended Adani Ports for buying in the range of ₹1,710-1,765 with a target price of ₹1,876 and stop-loss at ₹1,679, and BHEL in the range of ₹420-430 for the target of ₹470 with stop loss of ₹402.
