Indian equities face cautious start as GIFT Nifty slips and regional signals diverge
Indian benchmark indices posted their fourth consecutive weekly decline amid rising energy costs and geopolitical risks, leaving investors to navigate a technically weak market with divergent regional cues.
Indian equity benchmarks closed their fourth consecutive weekly decline, though a late-week recovery failed to erase broader losses driven by foreign selling and rising energy costs. The Nifty 50 finished the week down 1.15% at 23,897.70, while the Sensex dropped nearly 1% to 76,515.43.
Friday’s session offered a brief reprieve as the Sensex gained 362.57 points and the Nifty added 24.25 points, briefly touching 24,005.75 before surrendering late gains in the Closing Auction Session. Looking ahead to Monday, the GIFT Nifty indicated a subdued opening, closing roughly 10 points lower at 23,999.50 on September 5.
Market technicians warn that the underlying momentum still favors sellers. Ponmudi R, chief executive of Enrich Money, noted that the MACD remains in negative territory and identified 23,800 as a crucial support level for the Nifty. A decisive break below that threshold could expose the index to the 23,600 region, while a move above 24,200 is required to negate the current bearish undertone.
For the Sensex, the 77,000 to 77,500 zone presents immediate resistance, with the 78,000 level acting as a major hurdle. Sustaining above current support zones is essential to prevent further deterioration in what analysts describe as a sideways to bearish market bias.
The corrective trend across domestic markets has been heavily influenced by elevated crude oil prices and renewed geopolitical friction, particularly escalating tensions between the US and Iran. Investors are also recalibrating portfolios amid lingering uncertainty over the global interest-rate trajectory.
Regional markets provided mixed signals heading into the new week. Japan’s Nikkei 225 climbed 1.28% on Friday, lifted by an 11.78% surge in SoftBank Group Corp, while Taiwan’s Weighted Index gained 1.61%. Conversely, South Korea’s Kospi fell 1.5% for the week following a sharp midweek sell-off tied to the US-Iran dispute.
In the United States, equity futures edged higher on Friday as traders awaited the August jobs report for clues on Federal Reserve policy, though US markets will be closed on Monday for the Labor Day holiday. Consequently, domestic investors must rely on stock-specific selection and disciplined risk management to navigate the current consolidation phase.
