The Nifty 50 index has remained under pressure this year and formed a death cross pattern, pointing to more downward momentum. The index crashed to the crucial support level at ₹22,940 on Tuesday, and is hovering near its lowest level since July last year. It has crashed by almost 13% from its highest level this year. So, what next for the blue-chip Nifty 50 index?
Nifty 50 index has formed a death cross
The daily chart shows that the Nifty 50 index peaked at ₹26,276 in 2024 as animal spirits pushed many Indian stocks higher.
It has moved below the 50-day and 200-day Exponential Moving Averages (EMA), a sign that bears are in control for now. The index has formed a death cross as the two averages have flipped each other. A death cross is one of the most bearish patterns in the market.
The Relative Strength Index (RSI) and the MACD indicators have continued falling, which is another bearish sign.
On the positive side, the Nifty 50 index has formed a falling wedge pattern, a popular bullish sign in the market. This pattern comprises two descending and converging trendlines, with a breakout happening when they near their confluence levels.
Therefore, the Nifty 50 index will likely remain under pressure for now. A strong bullish breakout will be confirmed if the stock surges above the 200-day moving average level at ₹23,580. A move above that level will signal more upside, with the next point to watch being at ₹25,000.
On the other hand, a drop below the lower side of the wedge pattern will point to more downside, with the next level to watch being at ₹21,276, its lowest level in June last year.
Top Nifty index movers in 2025
Many companies in the Nifty 50 index have come under pressure this year, with some notable exceptions. Firms under the Bajaj umbrella are the best performers, with Bajaj Finance and Bajaj Finserv soaring by over 23% this year. This rally happened after the companies published stron financial results.
Maruti Suzuki share price has jumped by 18%, helped by the strong sales as its net income for the three months to December jumped by 13% to ₹35.3 billion or $408 million. Nonetheless, the company reported higher raw material costs.
Tata Consumer Products, which manufactures popular consumer brands, has jumped by 11.8% this year.
The other notable companies in the Nifty 50 index this year are names like Kotak Mahindra, IndusInd Bank, JSW Steel, and SBI Insurance.
On the other hand, Trent share price has crashed by over 23% this year after receiving multiple downgrades. The most recent downgrade was from Kotak Mahindra, who downgraded the stock to sell citing its high valuation metric.
The other top laggards in the Nifty 50 index are companies like Power Grid, Bharat Petroleum, Dr. Reddy’s, Adani Enterprises, and Apollo Hospitals.
In addition to valuation concerns, investors are worried about the reciprocal tariffs from the United States. A move to impose similar tariffs would hit India, a country that has some of the biggest tariffs globally. Such tariffs would be notable since the two countries do a lot of trade, with the US exporting goods worth $42 billion and importing goods valued at $87.4 billion.
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