Indian equity markets are likely to start the week on a cautious and range-bound note on Monday, with traders expected to focus more on protecting downside rather than taking fresh bets. Flat signals from GIFT Nifty, continued selling pressure seen last week, and the Nifty’s struggle to move past key resistance levels suggest that volatility could remain low, but weakness may persist if supports are tested early in the session. Any meaningful recovery is likely only if the index decisively moves above near-term resistance.
Domestic benchmarks ended the previous session on Friday sharply lower as selling pressure dominated across sectors. The BSE Sensex fell 604.72 points, or 0.72 percent, to close at 83,567.24. The Nifty 50 declined 193.55 points, or 0.75 percent, to settle at 25,683.30.
The Nifty opened weak at 25,840.40 and made a brief attempt to recover, touching an intraday high of 25,940.60 in early trade. However, sustained selling dragged the index down to an intraday low of 25,623.00 before it closed near the day’s lower levels.
Sectoral performance was broadly weak. IT and PSU bank stocks ended marginally higher, while most other sectors closed in the red. Realty, auto and FMCG stocks were the biggest laggards.
From a technical perspective, the Nifty continues to trade under short-term pressure and remains below its key moving averages. The formation of a long bearish candle on the daily chart signals that the corrective trend is still intact.
Immediate resistance is placed at 25,750. As long as the index stays below this level, the near-term bias is likely to remain weak. On the downside, support near 25,625 will be crucial. A sustained break below this level could extend the decline, while a move above resistance may trigger a short-term pullback.
Intraday support: 25,625 – 25,525 – 25,425
Intraday resistance: 25,725 – 25,815 – 25,900
Positional support: 25,250 – 24,600
Positional resistance: 25,750 – 26,350
The Bank Nifty ended moderately lower at 59,251.55, down 434.95 points, or 0.73 percent, reflecting continued weakness in banking stocks.
Momentum indicators remain negative, and the index has closed below its short-term moving averages. The bearish candle formation suggests the downtrend could continue in the near term. Immediate support is seen at 59,130, while resistance is placed near 59,350. A clear move above resistance could lead to a technical rebound; otherwise, the downward bias may persist.
Intraday support: 59,130 – 58,850 – 58,600
Intraday resistance: 59,350 – 59,600 – 59,830
Positional support: 58,580 – 57,350
Positional resistance: 60,000 – 61,250
Institutional flows were mixed in the previous session. Foreign institutional investors were net sellers worth ₹3,769.31 crore, while domestic institutional investors offset this with net buying of ₹5,595.84 crore.
At around 6:50 am IST, GIFT Nifty was trading at 25,809, down 7 points, pointing to a flat to slightly negative opening for domestic markets.
US markets closed higher overnight. The Dow Jones Industrial Average gained 237.96 points to end at 49,504.07, while the Nasdaq Composite rose 191.33 points to 23,671.35.
European markets also ended in positive territory, with the FTSE 100, CAC 40 and DAX closing moderately higher.
Asian markets were mixed in early trade. Japan’s Nikkei 225 was up about 312 points near 53,930, while Hong Kong’s Hang Seng Index slipped around 86 points to trade near 26,329.
Crude oil traded with a weak bias near $63.26 a barrel. Gold was higher around $4,589, while silver edged up to about $83.30.
The US dollar index eased slightly to around 98.89. The Indian rupee was trading near 90.25 against the dollar in early trade.
Prepared by: Research Desk, MyEquityLab.com, SEBI registered research analyst (Registration no: INH000023843).
