Nifty may slide further before finding footing

THE NIFTY SHED 0.53% for the week to close at 24,837.

- VK SHARMA

This marked the fourth consecutive weekly loss for the markets. To top it off, the Nifty closed below its 50-day exponential moving average (Dema) — the first such close since April 11, 2025. The only consolation: the close is also below the recent swing low of 24,882 made on July 21.

The benchmark has now been consistently forming lower tops and lower bottoms — a clearly bearish pattern. The oscillators are also showing bearish signals. While the markets may be termed oversold, there is still room for further decline. One will have to wait for a positive divergence to emerge before gaining confidence.