The Nifty is facing weakness due to rising crude oil prices, Middle East tensions, weak banking stocks, and technical breakdown signals below key moving averages.
By S. JHA
Mumbai, May 12, 2026 — Indian equity markets showed signs of weakening momentum on Monday as benchmark indices slipped below key technical levels amid rising concerns over the West Asia crisis, higher crude oil prices, and a weakening rupee.
According to a market note by Angel One, the Nifty has been trading within a 23,800–24,500 range over the past few weeks but repeatedly failed to cross the upper band despite multiple attempts.
The note said Monday’s close near the lower end of the range indicated early signs of a possible technical breakdown. The index also slipped below the 20-day and 50-day exponential moving averages (DEMA), a development viewed as negative for short-term market sentiment.
Analysts said the current decline appears to be a retracement of the sharp rally witnessed in April. Key support levels for the Nifty are now seen at 23,670, followed by 23,400 and 23,100. On the upside, the 24,100 level is expected to act as immediate resistance.
The broader market mood was also impacted by weakness in banking stocks. Bank Nifty traded largely range-bound during the week and slipped below the crucial 54,200 support level.
Investor nervousness was reflected in the surge in safe-haven buying. Gold ETF inflows in India jumped 34% month-on-month to ₹3,040 crore in April as investors sought protection amid uncertainty surrounding the US-Iran conflict. Total gold ETF assets under management rose to ₹1.78 lakh crore.
Meanwhile, the Indian rupee recorded its steepest single-day decline since March, falling 83 paise to close at 95.31 against the US dollar due to fears of rising crude oil prices.
India’s crude oil imports from Oman surged sharply in March as refiners looked for alternative suppliers amid disruptions in West Asia oil flows.
Analysts also warned that domestic fuel prices could rise if global crude prices remain elevated, potentially increasing losses for oil marketing companies.
FAQs:
Why is the Nifty under pressure?
The Nifty is facing weakness due to rising crude oil prices, Middle East tensions, weak banking stocks, and technical breakdown signals below key moving averages.
Why are gold ETF inflows rising in India?
Investors are shifting toward gold as a safe-haven asset amid uncertainty linked to the US-Iran conflict and volatility in equity markets.
Why did the Indian rupee fall sharply?
The rupee weakened due to concerns that rising crude oil prices could widen India’s import bill and pressure the economy.
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