Nifty Outlook: On Friday, Nifty started gap down with a big fall of 236 points and remained under selling pressure throughout the day. The index slipped to 25,444 during the day and closed almost near the same level. Falling for the second consecutive day, Nifty closed at 25,471, falling 336 points or 1.3 percent. It also lost the level of 25,500.
IT shares increased pressure
IT shares were the biggest contributor to the decline. For this reason there remained heavy pressure on the index. Despite the weak environment, Bajaj Finance, Eicher Motors and SBI Life closed with gains. Whereas, Hindalco, Hindustan Unilever and Eternal were among the major falling stocks.
selling in every sector
Selling was widespread on a sectoral basis. Metal, realty and FMCG shares showed more weakness and all sectoral indices closed in the red. Broader Market also disappointed. Nifty Midcap 100 fell 1.71 percent and Nifty Smallcap 100 fell 1.79 percent. It is clear that the pressure was not limited to just big stocks.
IT sector most affected
Sensex and Nifty were down about 1 percent throughout the week. Sharp selling in IT sector was the main reason. The IT index fell 8 percent last week, the biggest weekly fall in a year.
Five of the six biggest falling stocks on the Nifty were IT companies. These include Infosys, HCLTech, TCS, Wipro and Tech Mahindra. Due to this decline, the market cap of IT companies decreased by about ₹ 3 lakh crore.
On one hand, IT shares remained under pressure, while defense and PSU bank shares bucked the trend and registered a weekly gain of about 4 percent.
Big fall in gold and silver also
Weakness was also seen in the commodity market. The prices of gold and silver fell by about 10 percent. Expectations of an early interest rate cut by the Federal Reserve diminished after a stronger US dollar and better January employment data.
Also, news of Russia potentially returning to the dollar settlement system further strengthened the dollar. This increased pressure on precious metals.
Expert opinion on Nifty
Technically, Nifty has fallen below its 21 day, 50 day and 100 day moving average. These levels were at 25,480, 25,770 and 25,690 respectively. This means that the short term trend is weakening.
Nagaraj Shetty of HDFC Securities says that Friday’s selling has dealt a blow to recovery efforts. According to him, if Nifty breaks strongly below 25,450, then in the coming week it may slip to 25,200, which is close to the 200-day EMA. Currently 25,600 nearby blockages remain.
Index may even reach 25,000
Nilesh Jain of Centrum Finverse believes that the 200-day DMA around 25,300 may be tested soon. He says that the market movement is currently weak sideways. Unless Nifty goes above 25,800, there can be selling on every rise.
According to Rupak Dey of LKP Securities, closing below 25,500 turns the short-term trend to the downside. He believes that Nifty can slip even up to 25,000. On the upside, strong resistance is visible around 25,800.
Trend changed from bullish to bearish
Nandish Shah of HDFC Securities says that breaking of 20 day and 50 day EMA confirms the trend changing from bullish to bearish. According to him, the next positional support is at 25,108, which is the lower level of the gap formed on February 3, 2026. At the same time, the 200-day EMA present at 25,215 can provide support in between.
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