Analysts warn of further downside if key support levels break. However, retail investor sentiment on Nifty turned ‘extremely bullish’ by day-end on Stocktwits.
Indian equity markets have seen their longest losing streak in five years, with the Nifty ending below 24,400 and the Sensex slipping below 80,000 on Friday as tariff tensions and sustained foreign capital outflow weighed on investor sentiment.
A day after raising tariffs by another 25%, U.S. President Donald Trump stated that no trade talks with India would occur until pending issues are resolved.
Benchmark indices have closed lower for the sixth consecutive week, ending over 1% lower.
On Friday, the Sensex closed 765 points lower at 79,857, while the Nifty 50 ended down 232 points at 24,363. Broader markets too reeled under pressure, with the Nifty Midcap index ending down 1.6% and the Smallcap index falling 1.4%.
But the retail investor sentiment surrounding the Nifty 50 has moved to ‘extremely bullish’ by market close on Stocktwits, amid ‘high’ message volumes.
Stock Moves
Sectorally, all indices ended in the red, led by intense selling in real estate (-2.1%), consumer durables (-1.9%), and metals (-1.7%).
Bharti Airtel shares ended 3% lower, among the top Nifty losers, following a large block deal that saw its promoter-led entity pare stake.
Biocon tanked 6% on generics overhang in its June quarter earnings. Other earnings movers include LIC (+2.9%), Kalyan Jewellers fell 10%.
Coforge slipped 6% after its key client, Sabre, posted weak earnings and revised revenue guidance lower.
PG Electroplast shares tanked 23% after it revised its FY26 outlook sharply. Net profit guidance has been revised to 3-7% vs 39.2% earlier, while sales guidance has been cut to 17-18% from 30.3%.
Markets: What Next?
On the weekly chart, Nifty sentiment is bearish, according to analyst Sunil Kotak. If the index respects support at 24,380-24,400, it could see some recovery, but a break below this would drag it to 24,200, which aligns with the 50-day Simple Moving Average (SMA) on the weekly chart and is a crucial support zone on the long-term charts.
Ashish Kyal noted that the Nifty index has retraced most of Thursday’s gain, and has not given any reversal candle since morning. He advised against positional trades and sees 24,540 as the next hurdle on the upside.
Globally, European markets traded mixed, while US stock futures indicate a cautious start on Wall Street.
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