Nifty Extends Losing Streak to Six Weeks as Technical Indicators Flash Mixed Signals

The Nifty extended its weekly losing streak to six consecutive weeks, matching one of the longest correction phases observed in recent market cycles. Despite staging a partial recovery during the final three sessions of the week following a sharp decline on Tuesday, the benchmark index failed to overcome heavy overhead selling pressure. Market participants are closely watching the trading range established by a large bearish candle formed on September 15, which continues to dictate near-term direction.

The broader price structure for the Nifty remains under sustained pressure, with the index trading below its critical 20-week and 100-week moving averages. The 50-week moving average remains positioned significantly above current market levels, highlighting the persistent intermediate-term trend weakness. Although the magnitude of the ongoing price correction has surpassed the pullback witnessed between June and August 2025, technical analysts note that the possibility of a short-term counter-trend consolidation remains open if key technical floors hold.

Market breadth continues to reflect caution across major capital tiers. Several large-cap equities are currently hovering near their respective 52-week lows, while mid-cap and small-cap indices have experienced notable profit-booking over the past three weeks after touching record highs. Momentum indicators present a divided picture as the weekly relative strength index slipped below the crucial 40 threshold, even as the daily 14-period relative strength index rebounded from oversold territory above its nine-period average.

The immediate trading corridor for the index is defined by the September 15 bearish candle range spanning between 23,118 and 23,592. A decisive breakout on either side of this corridor is expected to determine the next major directional phase. On the downside, the 23,000 to 23,100 zone, which aligns with recent swing lows and the June 11 low of 23,070, serves as a primary support barrier. A breach below this floor could intensify selling momentum toward the 22,737 support level.

Conversely, a sustained move above the upper boundary at 23,592, followed by a close past the previous week high of 23,593, would improve short-term sentiment. Further confirmation of underlying strength requires the index to conquer the 20-week moving average at 23,955 and the 50-day moving average at 24,079, with intermediate resistance placed at 23,751.

While benchmark indices navigate prolonged correction phases, specific financial equities display relative strength. Anand Rathi Wealth registered a fresh all-time high amid elevated weekly trading volumes and expanding Bollinger Bands, signaling institutional accumulation. The stock trades above its upward-sloping moving averages with a bullish weekly Moving Average Convergence Divergence setup, with potential upside targets placed near Rs 2,366 and Rs 2,440 if it sustains above Rs 2,242.

Separately, Aditya Birla Capital experienced a 29 percent rally between June and August 2026 before entering a downward-sloping channel correction. The stock recently broke out of this channel backed by rising trade volumes and a range shift in the weekly relative strength index into the super bullish zone. Market participants watch Rs 411 as a crucial continuation threshold with upside targets near Rs 430 and Rs 444, supported by a strict stop-loss at Rs 389.