Nifty Losing Streak Hits 7 Weeks, Longest Since 2020: Is a Nifty Relief Rally Next as VIX Cools?

The Nifty losing streak is now the longest since the Covid crash of 2020. The Nifty 50 fell for seven consecutive weeks up to 25 September 2026, losing about 5.8% or 1,430 points, and investors are now asking whether a Nifty relief rally is finally due as FII selling, high bond yields and oil prices weigh on sentiment.

There are early signs that the Nifty losing streak may be stabilising. On Wednesday, 30 September, the Nifty was trading at 22,783.40 around 1:24 PM, up 0.30%, while the Sensex today was up 0.60% at 72,965.06. India VIX, the market's fear gauge, fell 3.28% to 12.97, suggesting traders are pricing in less near-term volatility.

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How Long Is the Nifty Losing Streak?

The Nifty losing streak covers seven straight weeks of declines up to Friday, 25 September 2026, when the index closed at 23,140.50, down 0.88% for that week. Over the seven weeks, the Nifty fell about 5.8%. This is its longest weekly losing streak since February-March 2020.

The Nifty losing streak did not stop there. On Monday, 28 September, the Nifty slipped below 23,000 intraday as the Sensex fell over 1,000 points, and on Tuesday the index closed at 22,716.20. September 2026 is on track to be the Nifty's weakest September in eight years, with around 40 of its 50 stocks lower for the month, according to market reports.

Indicator	Level
Nifty 50 (1:24 PM, 30 Sep)	22,783.40 (+0.30%)
Sensex (1:24 PM, 30 Sep)	72,965.06 (+0.60%)
Nifty weekly close (25 Sep)	23,140.50
Fall over 7 weeks	About 5.8% (1,430 points)
Week-to-date change	About -1.5%
India VIX	12.97 (-3.28%)
10-year G-Sec yield (28 Sep)	7.12%

Why Has the Nifty Been Falling for Seven Weeks?

The Nifty losing streak has been driven by a mix of global and domestic pressures. Crude oil prices moved back above USD 100 per barrel amid Middle East tensions, raising inflation risks for India, which imports most of its oil. India's 10-year government bond yield rose to 7.12% on 28 September, its highest since May 2026, while US Treasury yields also climbed.

These pressures fed into fears of an RBI rate hike at the October policy meeting. Foreign institutional investors (FIIs) kept selling Indian equities, while DII buying by domestic institutional investors provided some cushion. IT stocks were among the biggest laggards during the streak, as worries about AI-led disruption and a strong-rate environment weighed on the sector.

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Is a Nifty Relief Rally Next?

A Nifty relief rally is possible, but it may not mean the Nifty losing streak is over. A relief rally is a short-term bounce in a falling market, often driven by bargain hunting, short covering or a brief easing of bad news.

Several signs suggest the Nifty losing streak could pause. Seven straight weeks of losses have left many stocks oversold. India VIX has eased below 13. Crude oil has pulled back as Middle Eastern exports recover. Private banks, IT and oil marketing stocks led buying on Wednesday, and the Nifty Next 50 was up more than 1%.

The risks to ending the Nifty losing streak are just as clear. FII selling has not reversed, bond yields remain high, and the October RBI policy could bring a rate hike if inflation worries grow. Until those factors ease, rallies may run into selling near resistance levels.

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Can the Nifty Avoid an Eighth Weekly Loss?

To end the week higher, the Nifty would need to close above last Friday's level of 23,140.50. At about 22,783 on Wednesday afternoon, it was roughly 1.5% below that mark. With stock markets shut on Friday, 2 October, for Gandhi Jayanti, Thursday will be the last trading session of the week, so the Nifty losing streak is likely to extend to eight weeks unless there is a strong rally on Thursday.

Nifty Outlook: Key Levels to Watch

For the Nifty outlook in the near term, Wednesday's low of 22,659.80 is the first support, followed by the 22,500 zone. On the upside, 23,000 is the first major resistance, since the index broke below it on Monday, and last week's close of about 23,140 is the next hurdle.

Beyond levels, investors watching the Nifty losing streak should track FII flow data, crude oil prices, bond yields and the RBI policy outcome in October. September quarter results, which begin in the coming weeks, will also test whether earnings can support a recovery.

What Should Investors Do Now?

Long-term investors often use a long fall like the current Nifty losing streak to keep investing steadily through SIPs rather than trying to time the bottom, since bear phases tend to be followed by recoveries over time. Traders should respect support levels, use stop losses and avoid heavily borrowed positions while volatility remains high. Consult a SEBI-registered advisor before making portfolio changes.

Bottom Line on the Nifty Losing Streak

The Nifty losing streak has reached seven weeks, the longest since 2020, with the index down about 5.8%. A Nifty relief rally is possible as the market looks oversold and VIX cools, but FII selling, high bond yields and rate-hike worries mean any bounce may be tested. Watch 22,660 on the downside and 23,000 on the upside for direction.

Frequently Asked Questions on the Nifty Losing Streak

How long is the current Nifty losing streak?

Ans. The Nifty has fallen for seven straight weeks up to 25 September 2026, losing about 5.8% or 1,430 points. It is the index's longest weekly losing streak since the February-March 2020 Covid crash.

Why is the Nifty falling for so many weeks?

Ans. The fall has been driven by persistent FII selling, crude oil prices above USD 100 per barrel, a rise in India's 10-year bond yield to 7.12%, higher US Treasury yields and fears of an RBI rate hike in October.

Can the Nifty avoid an eighth weekly loss?

Ans. The Nifty closed last week at 23,140.50 and was at about 22,783 on Wednesday afternoon, around 1.5% lower for the week. With markets shut on 2 October for Gandhi Jayanti, the index would need a strong move on Thursday to end the week higher.

Is a Nifty relief rally possible?

Ans. A relief rally is possible because markets are oversold after seven weeks of losses, India VIX is easing and crude oil has pulled back. However, a lasting recovery would likely need FII selling to slow and bond yields to ease.

What are the key Nifty support and resistance levels?

Ans. Around 22,660, Wednesday's low, is near-term support, followed by the 22,500 zone. On the upside, 23,000 and then last week's close of about 23,140 are the key resistance levels to watch.

What is a relief rally in the stock market?

Ans. A relief rally is a short-term rise in a falling market, usually driven by bargain hunting, short covering or a brief easing of bad news. It does not always mean the downtrend has ended.

What should investors do during a long market fall?

Ans. Long-term investors often continue SIPs and avoid panic selling, while traders focus on support levels and risk management. Consult a SEBI-registered advisor before making changes to your portfolio.