Nifty Hits Historic Eight-Week Losing Streak as SBI Securities Analyst Predicts Rebound
· Business · Economic Times
The Indian stock market has logged losses for eight consecutive weeks, marking the longest losing streak in 25 years and surpassing the decline durations seen during the 2020 COVID-19 crash and the 2008 global financial crisis. Analyst Sudeep Shah of SBI Securities notes that while historical instances of such prolonged streaks have generally been followed by strong rebounds, current market setups share challenges with past crises. These headwinds include elevated crude oil prices, disruptions related to the Strait of Hormuz, rising global yields, and persistent foreign institutional investor outflows. Nifty currently holds a key technical support level at 22,600 as analysts evaluate options data ahead of the upcoming quarter. Historical data shows that similar extended losing streaks were previously followed by average one-month returns of around 11% and 12% over three months.
Why it matters
Retail investors and market participants face severe portfolio pressure from the historic eight-week Nifty correction, making technical support levels and historical recovery patterns critical for managing near-term equity strategies.
Read the original report — Economic Times
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