Nifty slides to 22,600 as oil prices rise and geopolitical tensions loom

India's benchmark Nifty index extended its losing streak on Friday, ending the session at 22,600 after shedding 87 points. The market opened higher but reversed sharply, dropping more than 400 points from its intraday peak before recovering in the latter half of the session and gaining over 80 points in the closing auction.

For the week, Nifty fell 2.36%, with mid-cap and small-cap segments under pressure, the latter posting its steepest weekly decline since February 2025. All sectoral indices closed lower, led by losses in metal, consumer durables and realty. Among the Nifty 50 constituents, Eternal, Apollo Hospitals and ONGC posted modest gains, while Shriram Finance, Adani Enterprises and JSW Steel declined.

The rupee weakened for a second day, closing at 94.94 per U.S. dollar, pressured by higher crude oil prices and a stronger dollar. Crude oil rose above $114 a barrel, reaching a five-month high amid concerns over supply disruptions in the Middle East and threats to Saudi oil infrastructure.

"Escalating US-Iran tensions and reports of possible renewed US-Israeli strikes on Iranian nuclear and military assets have heightened concerns about a wider conflict," analysts noted, adding that hostilities around the Strait of Hormuz could further tighten oil supplies and add to inflationary pressures.

Investors will also watch the Federal Reserve’s policy meeting on Oct. 27-28, the Bank of Japan’s rate decision, U.S. jobless claims and GDP data. Domestically, the second-quarter earnings season continues, with companies such as Paytm, Tata Consumer Products, Larsen & Toubro, Maruti Suzuki, Hindustan Unilever, Adani Ports, Trent, Sun Pharma and Bharat Electronics slated to report next week.

Jio Platforms completed its record IPO on Friday, and its listing on Oct. 28 is expected to influence primary-market sentiment.

Technical analysts said the broader bearish structure remains intact. Nandish Shah of HDFC Securities highlighted that Nifty is trading below key moving averages and has slipped below its 200-week and 20-day averages, marking a weaker setup. He identified 22,372, the day’s low, as immediate support, with a break potentially pulling the index toward 22,200. Resistance lies near 22,800 and 23,175.

Vatsal Bhuva of LKP Securities also cited 22,200 as a critical support level, warning that a decisive breach could trigger further selling. He placed immediate support at 22,500 and resistance in the 22,700-22,800 band, adding that sustained Brent crude prices above $110 a barrel could weigh on sentiment.

Nagaraj Shetti of HDFC Securities described the chart pattern as negative and noted the index’s inability to sustain opening gains, pointing to a near-term support zone of 22,300-22,200 and resistance around 22,800.

Bank Nifty lagged the broader market, ending 638 points lower. Sudeep Shah of SBI Securities said the 53,700-53,800 zone is a key support level, with a break potentially inviting more selling, while resistance is expected near 54,900-55,000.

Overall, the direction of crude oil prices, developments in the Middle East, global central-bank decisions, foreign-investor flows and corporate earnings are likely to shape Indian equity performance in the coming sessions.