The NSE Nifty fell 17.4 points or 0.1% to close at 25,492.3, while the BSE Sensex declined 94.73 points or 0.1% to end at 83,216.28. Both the gauges fell nearly 1% for the week.
“The market is currently witnessing a pause in fresh buying interest because of the absence of strong positive triggers,” said Aamar Deo Singh, senior vice president of research at Angel One.
Singh said comments from the US Federal Reserve Chairperson Jerome Powell hinting at a delay in rate cuts in December have added to the weakness.
On Friday, the Nifty 50 ended below 25,500, which was a key support level for the index.
“The Nifty 50 is undergoing a healthy retracement after a strong 1,500-point rally from 24,600 to 26,100 over the past month,” said Dharmesh Shah, head of technicals at ICICI Securities.
ETMarkets.comShah said if the index holds above its next support zone of 25,000-25,200, it has the potential to revisit 25,800 and 26,200 levels, possibly touching new all-time highs by December. “Next week will be crucial with the Bihar election results and any developments in the India-US trade deal,” he said.
Most Asian markets fell on Friday following an overnight sell-off on Wall Street. Japan fell 1.2%, China declined 0.25%, Hong Kong fell 0.9%, South Korea declined 1.8% and Taiwan dropped 0.9%.
At home, the Nifty Volatility Index or VIX-popularly known as the fear gauge of the market-gained 1.2% to 12.56 levels on Friday. The volatility index is up 25% in the past month.
Nifty Midcap 150 gained 0.5% and Nifty Smallcap 250 fell 0.2%. Of the 4,315 stocks traded on the BSE, 2,016 advanced and 2,157 declined at close. Foreign portfolio investors net bought shares worth ₹4,581 crore. Domestic institutions were buyers to the tune of ₹6,675 crore.