Indian equity markets witnessed continued selling pressure on Friday, with benchmark indices extending their losing streak to five consecutive sessions. The Nifty 50 breached the psychologically important 25,700 level, while the Sensex declined by nearly 700 points, reflecting broad-based weakness across market segments.

Market Performance Overview

The key market indices posted significant declines during Friday's trading session:

Broader Market Weakness

The selling pressure was not limited to large-cap stocks, as broader market segments also experienced notable declines. The Nifty Midcap 100 index fell 0.39%, while the Smallcap 250 index posted a steeper decline of 0.94%. This widespread weakness across market capitalizations indicates comprehensive selling pressure rather than sector-specific concerns.

Volatility Surge

Market volatility increased significantly during the trading session, with the VIX index rising over 3%. The volatility index, which measures market fear and uncertainty, typically rises during periods of market stress and declining equity prices. This surge in volatility reflects heightened investor anxiety and uncertainty in the current market environment.

Market Outlook

The consecutive five-session decline represents a notable correction phase for Indian equity markets. The breach of key technical levels, particularly the Nifty 50 falling below 25,700, may attract attention from technical analysts and traders monitoring support and resistance levels. The sustained selling pressure across multiple sessions suggests underlying concerns affecting investor sentiment in the current market cycle.

Indian equity markets faced significant selling pressure on January 8, with both benchmark indices extending their losing streak to a fourth consecutive session. Market participants remained cautious amid growing concerns over international trade dynamics and sustained foreign institutional investor outflows.

Market Performance Overview

The trading session on January 8 witnessed sharp declines across major indices, with both Sensex and Nifty 50 closing substantially lower.

Nifty 50 Trading Range

The Nifty 50 experienced significant volatility during the trading session, with the index testing both support and resistance levels throughout the day.

The index opened higher but failed to sustain momentum above the 26,000 psychological level, ultimately closing near the day's low. This price action indicates weakening bullish sentiment and suggests that bears are gaining control of the market direction.

Key Market Pressures

Several factors contributed to the negative market sentiment during the session:

• US Tariff Concerns: Renewed worries about potential US tariff hikes created uncertainty among investors
• Trade Deal Delays: Concerns over delays in finalizing the India-US trade deal added to market anxiety
• FII Selling: Continuous selling pressure from foreign institutional investors restricted any potential market recovery

Technical Analysis

The Nifty 50's decline below the 50-day moving average represents a significant technical development. The index's inability to hold above the 26,000 level, despite opening higher, demonstrates the current weakness in bullish momentum. The closing level of 25,876.85 suggests that bears have successfully defended higher levels and are pushing the index toward lower support zones.

The substantial trading range of 274.75 points indicates high volatility and uncertainty among market participants. The fact that the index closed near its intraday low of 25,858.45 further emphasizes the bearish undertone in the current market environment.