Indian equities ended the week to Friday, February 27, under pressure, with benchmark indices slipping amid weak global cues, persistent FII selling and rising geopolitical tensions. The near-term outlook remains volatile with a cautious bias.
Indian equity markets may continue to trade with heightened volatility, driven by a mix of global and domestic factors.
Persistent FII selling, which continues to weigh on sentiment
Weakness in global technology stocks
Rising geopolitical tensions, particularly war in the Middle East
Uncertainty around US trade policy and tariff proposals
Volatility linked to derivatives positioning after the February F&O expiry
While these factors may cap upside, continued buying by Domestic Institutional Investors (DIIs) and stock-specific opportunities could help limit sharp downside in the broader market.
The Nifty has slipped below the key support of 25,400, indicating a short-term negative bias
As long as the index remains below 25,400, selling pressure may persist
Immediate resistance: 25,400
Key support levels: 24,600 and 24,335
A sustained move above 25,400 will be required for the index to regain positive momentum.
Indian equity markets ended the week on a negative note, reflecting broad-based weakness across sectors.
Index performance
BSE Sensex fell 1.84 percent to close at 81,287.19
Nifty 50 declined 1.50 percent to 25,178.70
Bank Nifty dropped 1.1 percent to 60,529
Sectoral trends
Gainers: Metal and Pharma showed relative resilience with modest gains
Laggards: Realty, IT, PSU Banks and Financial Services stocks witnessed significant selling pressure
What weighed on the market
Weak global cues
Continued FII outflows
Sector-specific pressures, especially in IT
Volatility during February F&O expiry
IT stocks under pressure
The IT sector emerged as the biggest drag, with the Nifty IT index falling nearly 4 percent during the week amid a global technology sell-off.
Investor concerns intensified over the potential impact of AI-driven technologies on high-margin maintenance and migration services — a key revenue stream for leading Indian IT companies such as TCS, Infosys and HCLTech.
Major losers included:
Tech Mahindra (down 3–6 percent range)
HCLTech (down 3–6 percent range)
Infosys (down 3–6 percent range)
Fresh uncertainty emerged after US President Donald Trump proposed a potential 15 percent universal tariff, reviving concerns over a prolonged global trade conflict. This added to volatility across international markets and spilled over into emerging markets, including India.
At the same time, escalating tensions in Iran heightened risk aversion, prompting investors to reduce exposure to equities.
Nifty technical outlook
The Nifty is exhibiting a bearish bias, with momentum indicators weakening and the index trading below short-term moving averages.
Technical signals
Formation of a strong bearish candle during the week
Close near the lower end of the weekly range
Breakdown below previous support at 25,400, now a resistance zone
If the index sustains below 25,400, the downtrend may continue in the coming sessions.
Key levels:
Resistance: 25,400
Support: 24,600 and 24,335
A decisive and sustained move above 25,400 is essential for a trend reversal.
Bank Nifty technical outlook
The Bank Nifty ended at 60,529, down 1.1 percent for the week, reflecting a mildly negative bias.
Key levels to track:
Immediate support: 60,000
Major support: 58,700
Resistance: 61,700
A break below 60,000 could accelerate the decline towards 58,700. On the upside, a sustained move above 61,700 would be needed for the index to resume its bullish trajectory.
BSE Sensex technical outlook
The BSE Sensex closed at 81,287, declining about 1.17 percent for the week. The technical structure suggests continued near-term weakness.
Important levels:
Immediate resistance: 82,000
Key support zone: 80,400–80,000
As long as the index trades below 82,000, the negative bias may persist. The 80,400–80,000 zone could act as a crucial demand area in the event of further downside.
Markets are at a technically sensitive juncture, with key indices trading below important support levels. While DII support and selective buying may cushion declines, sustained FII outflows and global uncertainties could keep sentiment fragile in the week ahead.
Weekly market analysis prepared by: Research Desk, MyEquityLab.com. (SEBI Registered Research Analyst No: INH000023843)