Nifty Breaches 200-DMA as Markets Extend Decline on Broad-Based Selling
Indian stock markets continued their downward trend on Friday, January 23, with Nifty falling 241.25 points to close at 25,048.65 and Sensex declining 769.67 points to 81,537.70. The decline was driven by broad-based selling, rupee hitting record lows, and persistent foreign institutional outflows. Nifty touched an intraday low of 25,025.30, representing a 1.04% decline from previous levels.
*this image is generated using AI for illustrative purposes only.
Indian equity markets extended their losing streak on Friday, January 23, with both benchmark indices posting notable declines amid challenging market conditions. The session was marked by broad-based selling pressure, currency weakness, and continued foreign institutional outflows.
Market Performance Overview
The trading session reflected the ongoing bearish sentiment across Indian equities. Key market movements included:
| Index | Closing Level | Points Change | Percentage Change |
|---|---|---|---|
| NSE Nifty | 25,048.65 | -241.25 | -0.95% |
| BSE Sensex | 81,537.70 | -769.67 | -0.94% |
Intraday Trading Dynamics
The Nifty experienced heightened volatility during the trading session, with the index touching deeper lows during intraday trading. The benchmark index plunged 264.60 points or 1.04% to hit an intraday low of 25,025.30, indicating intensified selling pressure before recovering marginally toward the close.
Key Market Pressures
Several factors contributed to the market's downward momentum:
- Broad-based selling: Widespread selling across sectors weighed on overall market sentiment
- Currency weakness: The rupee's depreciation to record low levels added to investor concerns
- Foreign outflows: Continuous selling by foreign institutional investors maintained pressure on equity markets
Technical Significance
The market's breach of the 200-day moving average represents a significant technical development, potentially signaling extended weakness in the near term. This technical breakdown comes as markets approach the monthly expiry, which could introduce additional volatility in trading sessions ahead.
The synchronized decline across both benchmark indices reflects the challenging environment facing Indian equities, with multiple headwinds converging to pressure market performance.
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