Nifty faces 23,270 resistance after eighth weekly decline; analyst picks 5 stocks

The Nifty 50 index closed at 23,140.50 on Friday, marking its eighth consecutive weekly decline—the longest losing streak since the COVID-led market crash in 2020. The benchmark slipped 1% during the week as the Indian stock market struggled amid global headwinds. The Sensex rose 315 points to close at 73,896, while broader markets remained mixed, with Nifty Midcap 100 in red and Nifty Smallcap 100 in green.

Technical indicators paint a persistently bearish picture. Nifty is trading approximately 3% below its 50-day EMA and nearly 4% below its 100-day EMA, with both averages trending downward. The Daily RSI faced resistance near 40 and turned lower, entering what analysts describe as a super-bearish zone. The Daily MACD remains bearish with both lines trading below zero, and the MACD histogram has remained below the zero line for the last 30 trading sessions, highlighting persistent negative momentum. According to analyst Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities, 23,270-23,300 represents critical resistance, while 23,000 serves as support.

Global factors continue weighing on sentiment. The sharp rise in the US 10-year bond yield—currently at its highest level since 2007—coupled with heightened volatility in Brent crude oil prices, has pressured market sentiment. The real test for Nifty remains whether ongoing weakness has further room to run amid these persistent global headwinds.