Sensex Support Seen At 71,000–71,200, Nifty May Rebound Towards 22,800

Mumbai: Indian stock markets ended lower for the eighth straight week as continued foreign investor selling, higher crude oil prices and weak global signals kept investors cautious. Analysts said a brief recovery remains possible despite the broader weakness.

Eight weeks of losses

The Sensex lost 1,670.84 points during the week, while the Nifty declined more than 3 percent. Selling pressure continued across all four trading sessions, leaving both benchmarks struggling to recover.

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The Sensex dropped 1.52 percent on Monday and extended its losses in subsequent sessions. On Thursday, it fell another 570.59 points, or 0.79%, to close at 71,909.70.

During Thursday’s session, the index tumbled 1,187.41 points to a fresh 52-week low of 71,292.88. The Nifty ended at 22,421.95, down 198.50 points, or 0.88 percent.

Persistent foreign fund outflows, elevated bond yields and renewed strength in crude oil prices weighed on sentiment throughout the week.

Sensex nears support zone

Analysts placed immediate support for the Sensex between 71,000 and 71,200. Any recovery could face resistance in the 72,300–72,500 range.

Sensex Falls 570.59 Points To 71,909.70, Nifty Ends At 22,421.95 As Market Losses Deepen

The index remains below its 50-day exponential moving average of 75,544.56 and its 200-day average of 77,684.60, indicating continued weakness in the broader trend.

However, analysts said the recent heavy selling and proximity to important support levels could create room for a brief rebound.

Such a recovery would offer temporary relief, although the market’s underlying direction remains weak, according to their assessment.

Nifty recovery faces risks

For the Nifty, market watchers identified 22,800 as the first possible upside target, followed by 23,100–23,200 if buying gathers strength.

They suggested a hedged approach, using protection against potential losses, given the continuing volatility.

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A decisive fall below the April low could weaken the recovery case and push the Nifty towards 21,700–22,000, they warned.

Global signals remain crucial

Analysts said movements in crude oil prices, global bond yields and overseas markets will influence near-term trading. Foreign institutional investor activity will also remain important in determining whether any rebound can hold.

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