Stock Market This Week: Can Nifty50 & BSE Sensex Defend Key Supports Amid IT, Pharma Selloff?

The Indian stock market closed the week deep in the red, raising concerns about whether indices can stabilize in the upcoming sessions. On Friday, the Nifty 50 lost 236 points (0.95%) to settle at 24,655, while the Sensex fell 733 points (0.90%) to 80,426.

The Nifty declined 2.65% over the week, marking its longest losing streak since March 2025 with six straight sessions of declines.

Sudeep Shah, Vice-President & Head of Technical & Derivatives Research at SBI Securities, said the pace of the decline was striking: “The benchmark Nifty index has witnessed a sharp decline of 2.65% in the past week, erasing more than 60% of the gains accumulated over the previous three weeks. The fall from the recent high was much faster, as the index tumbled by nearly 800 points in just seven trading sessions. This marks the longest losing streak since March 2025, with the index closing in the red for six consecutive days — a clear indication of intensifying bearish sentiment across sectors.”

IT and Pharma Set The Tone For This Week
The biggest drag came from IT and pharma stocks after U.S. President Donald Trump announced a $100,000 H-1B visa fee and a 100% tariff on pharmaceutical imports. These measures sparked panic among investors in India’s most export-dependent sectors.

The Nifty IT index slumped nearly 8% during the week, while pharma stocks also came under heavy selling pressure. Shah noted that the technical picture of IT has worsened:

“The Nifty IT index has witnessed a sharp correction in the last week. It has tumbled by nearly 8% and given a horizontal trendline breakdown on the daily scale. Most noteworthy, it has slipped below its 200-week EMA. With both weekly and daily RSI readings below 40, the sector is likely to continue its southward journey in the short term.”

He added that pharma, too, looks weak in the near term given the global headwinds.

Nifty 50: Crucial Support At 24,350
For the coming week, Shah flagged 24,400–24,350 as the crucial zone to watch on the Nifty.
“The 200-day EMA is the last line of defense. Any sustainable move below the 24,350 level could trigger further correction toward 24,000. On the upside, resistance has now shifted lower to the 24,850–24,900 zone, which will be key for any recovery attempt,” he explained.

Bank Nifty: Testing Breakdown Levels
Bank Nifty was also under pressure, dropping nearly 2% last week and closing below 54,400. From its recent high of 55,835, the index has slipped more than 1,400 points.

Shah highlighted that next week’s support lies at 53,800–53,700: “Any sustainable move below 53,700 could trigger a sharp correction toward the 53,000 level. On the upside, the resistance has now shifted lower to the 54,700–54,800 zone, which will act as a crucial hurdle for any recovery attempt.”

Sensex: All Eyes On The 80,000 Mark
The Sensex ended the week with a 2.69% loss, closing below the 80,500 level. The index has now slipped below several moving averages and is testing its 200-day EMA.
Shah cautioned: “The 80,100–80,000 zone will act as crucial support for the Sensex. A sustained move below 80,000 could open the gates for a deeper correction toward 79,300. On the upside, the resistance has now shifted lower to the 80,900–81,000 zone.”

He further noted that the daily RSI has slipped below 40 and remains in a falling mode, suggesting deteriorating momentum.

October Seasonality Adds Volatility
Seasonal trends suggest October could be a mixed bag. In the past 18 years, Nifty has closed positively 13 times with an average gain of 4%, but when it ended negatively (five times), the average loss was 11.48%.

Shah remarked that traders should brace for volatility: “The average return for Nifty in the October series has been -0.30%. Over the past 18 years, October has consistently shown an average volatility of 10.4% for the Nifty index.”

Sectors And Stocks To Watch This Week 
Alongside IT and pharma, other sectors expected to underperform in the near term include healthcare, consumer durables, financial services, capital markets, tourism, FMCG, and media.
Still, Shah pointed out a few bright spots: “Technically, Larsen & Toubro (LT), Ashok Leyland, Nam India, and Hindustan Petroleum are looking good.

Stock Market Next This: A Make-Or-Break Moment
Overall, the week ahead will be crucial in determining whether Indian equities stabilise or slip deeper into correction territory. With global shocks hitting India’s key export sectors, the market’s ability to defend long-term support levels will be closely watched.

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