Markets May Face Further Decline if Nifty Fails to Clear 23,600 Resistance

Indian Equity Markets Decline for Third Straight Day

The Indian equity benchmark indices, Sensex and Nifty, experienced a decline of over 1 percent on Friday, marking their third consecutive day of decline. This downward trend was largely attributed to a surge in crude oil prices, which dampened investor sentiment.

The rise in crude prices is linked to continued uncertainty over US–Iran negotiations. Additionally, a weak earnings outlook from Infosys triggered heavy selling in IT shares, further adding pressure on the benchmarks. Analysts noted that the Nifty slipped below its key support level of 23,900, which coincides with the 20-day exponential moving average, indicating a possible negative bias in the near term.

The decline in the Indian equity markets was also influenced by persistent foreign fund outflows and a weak trend in global markets, amid prolonged geopolitical tensions and disruptions in the Strait of Hormuz. This further weighed on investor sentiment.

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Key Market Statistics

The Sensex declined 999.79 points or 1.29 percent to close at 76,664.21. During the session, it dropped 1,260.13 points or 1.62 percent to 76,403.87. The broader Nifty fell 275.10 points or 1.14 percent to settle at 23,897.95.

Analysts at SBI Securities and Religare Broking have issued warnings regarding the Indian equity markets. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, stated that the immediate support for the Nifty is in the 23,600–23,550 range. A sustained move below this zone could extend the decline towards 23,350, followed by 23,150 in the short term. On the upside, the 24,200–24,250 range is likely to act as immediate resistance.

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Ajit Mishra, SVP, Research at Religare Broking, added that with the Nifty slipping below 23,900, the near-term bias may turn negative, with the next support seen around 23,500. Any rebound towards the 24,200–24,500 zone may face selling pressure unless supported by easing crude prices and improved global cues. Traders should remain selective and keep position sizes in check.

Brent crude rose 2.17 percent to USD 107.3 per barrel. Foreign institutional investors sold equities worth Rs 3,254.71 crore on Thursday. In Asia, South Korea's Kospi and China's Shanghai Composite ended lower, while Japan's Nikkei 225 and Hong Kong's Hang Seng closed higher. European markets were trading in the red in afternoon deals, while US markets had ended lower on Thursday.