Indian equity markets ended lower on Friday, March 6, 2026, as volatility surged, with the Nifty 50 closing down 2.89% for the week, according to multiple analysts.
The benchmark Nifty 50 settled at 24,450.45, a net loss of 728.20 points, after oscillating within a 683-point range throughout the week, hitting a high of 24,989.35 and a low of 24,305.40. The index concluded trading precisely at its 100-week moving average of 24,441.95, a level considered a key intermediate-term trend support, analysts at ETMarkets.com noted.
Contributing to the downward pressure was a significant increase in market volatility. The India VIX, a measure of investor expectation of market fluctuations, jumped 6.18 points, or 45.08%, to 19.88 as of Friday afternoon, according to data from Google Finance and Moneycontrol. This rise in the India VIX reflects growing nervousness among market participants, analysts say.
The broader market also showed signs of weakness, with the Advance-Decline line slipping to a recent low even as the Nifty 500 has not yet reached a fresh low. This negative breadth divergence suggests a weakening of market participation and potentially foreshadows further corrective pressure, ETMarkets.com reported.
Looking ahead, analysts anticipate a cautious start to the coming week as the market tests the critical 100-week moving average support. Immediate resistance levels are expected at 24,800 and 25,070, while key support levels lie at 24,300 and 24,000.
Technical indicators further reinforce the cautious outlook. The weekly Relative Strength Index (RSI) stands at 38.47, placing it in the neutral-to-bearish zone, and is trending lower, indicating weakening momentum. The weekly MACD remains below its signal line and in negative territory, confirming the weak broader momentum, according to ETMarkets.com.
From a pattern perspective, the Nifty has closed below the lower Bollinger Band and is currently testing the 100-week moving average, creating a technically decisive zone. While a minor rebound is possible, a failure to hold this support could lead to deeper retracement levels.
Analysts recommend a defensive approach, advising traders to avoid aggressive buying until stability emerges near support levels. Risk management, including strict stop-losses, is prioritized given the rising volatility and weakening breadth. Pullbacks toward resistance zones may continue to attract selling pressure.
Sectoral analysis using Relative Rotation Graphs (RRG) indicates that the Infrastructure and Pharma indices are leading, while the Nifty Financial Services, Energy, PSE, Banknifty, Metal, and PSUBank indices are also showing relative strength. Conversely, the Nifty Services Sector Index is weakening, and the IT and Realty indices are lagging, according to ETMarkets.com. The Media Index is showing improvement.
