From The Economic Times · Veer Sharma · · 2m
Nifty Drops 8 Weeks; Sudeep Shah on Key Levels
Nifty's 8-week losing streak signals potential for more selling as Sudeep Shah highlights 22,600 as critical support.
In brief
Nifty's 8-week losing streak signals potential for more selling as Sudeep Shah highlights 22,600 as critical support. Nifty has lost for eight consecutive weeks, the first time in 25 years, with 22,600 as a key support level for potential rebound. Originally reported by The Economic Times.
Nifty's 8-Week Losing Streak
The Indian stock market has logged losses for eight consecutive weeks, surpassing the streaks seen during the 2020 Covid-19 crash and the 2008 global financial crisis.
Historical Context for Nifty
Since 1992, there have been only six earlier instances of such prolonged losing streaks, with the longest stretches being eight weeks in 1993 and nine weeks in 2001.
Nifty's Historical Returns
Historically, the end of such losing streaks has generally been followed by a rebound with an average return of 11% in one month, 12% in three months, 14% in six months and 39% in twelve months.
22,600 as Critical Support
The 22,600, 22,400 zone will be crucial for Nifty, with a sustained hold triggering a pullback and a decisive breakdown increasing the risk of another leg lower.
FII Outflows and Positioning
FIIs have offloaded Rs 43,687 crore in just six trading sessions, with their index futures long-short ratio declining to 8.01% near the lower end of its historical range.
Nifty IT Weakness
Nifty IT continues to trade below key daily and weekly moving averages with rising ADX indicating strengthening bearish momentum.
PB Fintech Strategy
PB Fintech has corrected nearly 48% in six sessions with a bearish bias likely to remain intact below Rs 1,150, 1,200.
Bajaj Auto Analysis
Bajaj Auto declined 7.62% and closed below its 200-day EMA for the first time since April 2026, with RSI at 22 indicating strong bearish momentum.
Infosys and TCS Outlook
Infosys and TCS remain below key moving averages with rising ADX and RSI below 40 indicating strengthening bearish momentum.
India VIX Volatility
India VIX has rebounded nearly 55% from its September 1 low of 9.24, with Nifty's IV percentile around 72% indicating higher volatility.
Key Support Levels
The 22,150, 22,100 zone remains crucial support, while 22,550, 22,600 acts as the immediate hurdle for Nifty's recovery.
What Happens Next
A sustained hold at 22,600 could trigger a pullback, while a decisive breakdown would increase the risk of another leg lower in Nifty.
The essence
Nifty has lost for eight consecutive weeks, the first time in 25 years, with 22,600 as a key support level for potential rebound.
