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Sensex and Nifty Post Third Straight Weekly Drop Despite IT-Led Friday Bounce

Concentrated end-of-day orders from the new Closing Auction Session, shifts in oil prices and US rate signals have raised short-term volatility.

Overview

  • Indian benchmarks finished the week lower for a third week in a row even after IT stocks powered a late rebound that left Nifty near 24,175 and Sensex above 77,260 at Friday close.
  • The newly introduced Closing Auction Session and the monthly derivatives expiry concentrated settlement activity into a short window and produced sharp end-of-day swings that moved heavyweight stocks disproportionately.
  • Brent crude fell about 4 percent toward $88 a barrel during the week, which eased energy-cost pressure but did not remove risks tied to USIran tensions and potential Strait of Hormuz disruption.
  • Comments at the Jackson Hole Fed symposium and lingering uncertainty over US interest rates have made foreign institutional flows cautious and kept investors on edge.
  • Traders are watching technical levels—Nifty support near 24,000–23,800 and resistance around 24,300–24,400—and upcoming US employment data for fresh direction that could widen or calm volatility.