F&O Talk | Nifty breaches 20 & 100-DMA amid 11% VIX spike; Sudeep Shah on Coforge, 5 other top weekly movers

Indian stock markets witnessed significant declines on Friday, with the Nifty index closing at 25,471.10, down 336 points or 1.30%, and the BSE Sensex falling by 1,048.16 points to 82,626.76. This downward trend was primarily driven by a sell-off in consumer, IT, and energy sectors, particularly impacting the IT index, which dropped over 8% during the week. Analysts noted that the Nifty's inability to maintain above the crucial 26,000 mark prompted profit booking, resulting in a swift correction of nearly 550 points in the final trading sessions. The current market sentiment is cautious, with the Nifty trading below key support levels and moving averages, indicating a bearish trend. Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities, highlighted the challenges within the IT sector, attributing the downturn to concerns over disruptive AI technologies affecting traditional IT services. With the earnings season concluding, investors are looking for new triggers as the market grapples with technical indicators suggesting further downside risks. The outlook remains uncertain, and analysts advise caution as the market navigates these fluctuations.