Nifty Records Largest Weekly Decline in 12 Months Amid Rising Oil Prices and Economic Uncertainty

Nifty 50 Falls Below 24,500, Posts Biggest Weekly Loss in a Year

On March 6, the Nifty 50 index fell decisively below 24,500, reporting its biggest weekly loss in the last one year. The index traded well below all key moving averages and showed no signs of improvement in momentum indicators, indicating a bearish sentiment.

The Nifty 50 opened lower and remained under the bears' control throughout the session, closing at 24,450, down 315 points (1.27 percent). The index formed a long bearish candle on the daily charts with a lower high–lower low formation, indicating weakness.

The Relative Strength Index (RSI) on the daily charts fell to 33.45, while the Moving Average Convergence Divergence (MACD) maintained a bearish bias with further expansion in the red histogram. The India VIX remained in elevated zones, rising 11.33 percent to 19.88 on Friday and surging 45 percent during the week, marking a major risk for bulls.

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Next week, 24,300 is expected to be a crucial zone for the Nifty 50. A decisive fall below it can drive the index toward 24,050–24,000, while sustaining above it could keep the market in consolidation with range-bound trading. The index may possibly trade in the 24,000–25,000 range next week.

Bank Nifty underperformed the benchmark Nifty 50, plummeting 1,273 points (2.15 percent) to close at 57,783. The index formed a long bearish candle on the daily scale, weakening the market mood. The 200-day EMA (57,430) is expected to be at major risk, considering the index finally closed well below the 100-day EMA.

For the week, the Bank Nifty crashed 4.54 percent, the biggest weekly loss since December 2024, and formed a long red candle with an upper shadow on the weekly timeframe, signalling that bears have a strong upper hand. The immediate support is placed in the 57,400–57,300 zone, which coincides with the 200-day EMA.