Nifty, Sensex set for weak start, sixth straight session of losses likely; key levels to watch on September 26

Domestic equity benchmarks Nifty 50 and Sensex are likely to see a bearish open in trade for the last trading session of the week on Friday, September 26, which would extend the sell-off to the sixth consecutive session.

At 7.20 a.m., the GIFT Nifty index was quoting 24,921.5, lower by 42.5 points or 0.17 percent.

Overnight, US equities slipped for a third straight session on Thursday as investors digested a surprise fall in jobless claims along with a strong upward revision to GDP growth, raising fresh doubts about the timing of potential Federal Reserve rate cuts.

The Dow Jones Industrial Average declined 0.4 percent, while the S&P 500 shed about 0.5 percent. The Nasdaq Composite also ended lower by nearly 0.5 percent.

Asian stocks retreated after concerns about lofty valuations and mixed signals from Federal Reserve officials on rate cuts stalled a record-breaking rally on Wall Street.

Over the last session, the Indian markets extended losses for the fifth straight session as weak global cues, foreign outflows and visa-related worries pressured investor sentiment. The Sensex fell 555.95 points, while the Nifty 50 slid 166.05 points to settle at 24,890.85, under the psychological level of 25,000.

Foreign institutional investors (FIIs) were sellers in the previous session, offloading Rs 4,995 crore according to provision data, while domestic institutions (DIIs) were buyers, with net purchases of Rs 5,103 crore.

Key levels to watch on September 26

The Nifty 50 has been under pressure since its late-August peak near 26,000, moving within a descending channel of lower highs and lower lows. The index has slipped below the 25,000 mark, with immediate support seen at 24,575 along the channel slope. On the upside, the zone of 25,000–25,150 — earlier a support — now acts as resistance.

"With no clear reversal patterns yet and volatility on the rise, the near-term momentum remains cautious and tilted to the downside," said Ponmudi R, CEO of Enrich Money.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.