Sensex, Nifty see longest losing streak in 29 years but analysts see more pain ahead

Sensex and Nifty saw their fifth straight monthly loss on Friday- longest such streak since 1996 - as concerns over global economic growth due to tariff war, FII outflows and subdued Q3 earnings led to broad-based selling on Dalal Street. 

Last time, when Nifty fell for five consecutive months was between July and November 1996. Its longest losing streak spanned across eight months from September 1994 to April 1995.

Investor wealth declined by Rs 8.82 lakh crore to Rs 384.28 lakh crore today compared with a valuation of Rs 393.10 lakh crore recorded in the previous session. Sensex tanked 1414 pts to 73,198 and Nifty slipped 420 pts to 22,124 on Friday. This is the eighth straight session of losses for Nifty. Sensex ended in the red today after closing marginally higher in the previous two sessions. 

Amid the ongoing correction, Sensex is down 6.32% and Nifty has lost 6.43% in 2025.

In February, Sensex sinked 3.56% and Nifty tanked 3.63%. 

Sensex is now down 15% or 12,780 pts from its all-time high of 85,978 reached on September 27, 2024. The 50-stock Nifty has corrected 15.80% or 4,152 pts from its record high of 26,277. 

Vinod Nair, Head of Research, Geojit Financial Services said," As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction."

Rupak De, Senior Technical Analyst at LKP Securities said, "The RSI remains bearish but has entered the oversold zone. In the near term, Nifty is expected to find support around 21,800-22,000. A sustained move above 21,800 could lead to a significant recovery, while failure to hold this level may trigger another sharp decline."

Analysts at Kotak Institutional Equities are cautious and feel that the correction is not yet over. They expect stocks to drift without clear direction in the coming months. Despite the correction, overall 12-month returns remain flat, making it difficult to find compelling value-buying opportunities, they said. 

Stocks such as IndusInd Bank, M&M, Bharti Airtel, Tech Mahindra,  Infosys, Tata Motors, HCL Tech, Infosys and Tata Steel led the losers on Sensex, falling up to 61.9%. HDFC bank was the sole gainer rising 1.86%.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities sees more weakness in the market in the near future. 

"The underlying trend of Nifty is sharply down and one may expect more declines in the short term. Having moved below the immediate support of 22400 (20-month EMA), Nifty could now slide down to the next lower supports of 21800-21700 levels (swing lows of Mar-Apr 24) in the coming week. Immediate resistance is placed around 22300," said Shetti.  

Devarsh Vakil, Head of Prime Research, HDFC Securities said,  "Immediate support for the Nifty is expected in the 22,000-22,050 range, below which it could fall further toward the 21,777 support level. On the upside, the 5-day EMA near 22,500 could serve as resistance."

Ajit Mishra – SVP, Research, Religare Broking said, "On a technical front, after five consecutive months of decline, Nifty has approached the crucial support zone of 21,800-22,000, where multiple key indicators align. Given the prevailing weakness, traders should maintain a cautious stance with a negative bias until clear signs of a pause or reversal emerge. It is also advisable to manage leverage carefully and prioritize hedged trades for risk management."

As many as 51 stocks hit their 52-week highs today. On the other hand, 908 shares fell to their 52-week lows on BSE, reflecting weak market sentiment.

Market breadth was in the red on Friday. Out of 4,082 stocks traded, 759 stocks ended in the green on BSE. Around 3234 stocks closed in the red while 89 stocks remained unchanged.

Around 5 stocks hit their lower circuits. On the other hand, 12 shares hit their upper circuits amid weak sentiment in the stock market today. 

BSE midcap index tanked 853 pts to 38,952, indicating weakness in the broader market. BSE small cap stock index too tumbled 1,028 pts to 43,082 level.

FIIs/DIIs positions  

Foreign institutional investors sold Rs 556.56 crore worth of equities on a net basis on Thursday, while domestic investors bought Rs 1727 crore of shares, as per provisional NSE data.

Previous session

Sensex gained 10 pts to 74,612 and Nifty slipped 2.5 pts to 22,545. Nifty closed at a nine-month low, its lowest level since the close of 21,884 on June 4.