The Nifty index declined 3.11% over the past week, marking its sharpest weekly fall in 29 weeks and closing lower for the eighth consecutive week, the longest losing streak in 25 years, according to livemint.com. On Thursday, the index breached its 200-week moving average (MA) at 22,606.97 for the first time since March 2020, closing below this key long-term support level.
Thursday’s trading session saw the Nifty approach its April 2 low of 22,182.55 and slip below the rising trendline drawn from the major swing lows of June 2024 and April 2025, weakening the broader technical structure. Despite the decline, the index recovered nearly 200 points from the day’s low and retraced more than half of its intraday fall, forming a bearish-bodied candle with a long lower shadow that indicated buying interest at lower levels, livemint.com reported.
The breach of the 200-week MA is significant as it has historically acted as a strong support zone. The 22,600 level now serves as an important reference point for upcoming sessions. A quick recovery above this level could stabilize the market, but continued trading below it may extend the broader correction. The market is currently technically stretched, with the Nifty closing outside the lower Bollinger Band and showing oversold conditions, which raises the possibility of a rebound.
The Nifty’s performance this week marks its longest losing streak since 2001, underscoring the current market weakness. The next key technical level to watch is the 200-week MA at 22,606.97, which will influence whether the index stabilizes or faces further downward pressure in the near term, according to livemint.com.