Sensex drops 0.79% on Thursday as global cues weigh on Indian markets

The NSE Nifty 50 also declined, dropping 198.50 points, or 0.88%, to settle at 22,421.95. Together, the indices extended their corrective phase for the eighth consecutive week, driven by sustained foreign institutional investor selling, elevated bond yields, and a fresh surge in crude oil prices.

Technical analysts noted that the Sensex remains below key moving averages, with the 50-Day EMA at 75,544.56 and the 200-Day EMA at 77,684.60, while the RSI slipped to 24.55, indicating deeply oversold conditions. The broader support zone is seen at 71,000–71,200, with resistance at 72,300–72,500.

For the Nifty, experts highlighted that the index tested the long-term moving-average support zone of 200-WSMA and 200-WEMA around 22,400–22,600—a level not revisited in nearly six years—before closing at 22,421.95. While the trend remains negative, oversold conditions and technical support could trigger a near-term rebound, with 22,800 as an initial upside target.

Globally, US stocks ended higher on Friday, with the Nasdaq Composite advancing 1.2% to a record high of 27,190.86, the S&P 500 rising 0.7% to 7,722.72, and the Dow Jones gaining 0.5% to 51,176.46, though the latter ended the week 1.3% lower. In Asia, the Kospi fell 1.1% for the week to 7,003.74, the Nikkei 225 declined 0.87%, and Taiwan’s TAIEX rose 0.3% to a fresh record high of 48,476.

The GIFT Nifty ended 0.59% up at 22,624.50 on 2 October, reflecting mixed sentiment in offshore trading. Market participants are advised to maintain disciplined risk management, as a decisive break below key support levels could negate rebound prospects.