Key support levels for the NSE Nifty 50 slipped to around 23,650 following Monday’s bloodbath on Dalal Street. The sell-off hammered benchmark equity indices and signalled further volatility ahead.
Global cues stayed weak following the market hours, with US President Donald Trump calling the ceasefire with Iran the “weakest”, and the Wall Street edging lower. The GIFT Nifty signalled a likely negative start for the Indian market, with futures trading 0.12% lower at 23,759.5 at 11:05 pm.
“Going forward, the zone of 23,680–23,650 is expected to act as immediate support for the index, as it coincides with the 38.2% Fibonacci retracement of the prior upmove (22,182–24,601),” said Sudeep Shah, head of technical and derivatives research at SBI Securities.
The index formed a sizable bearish candlestick pattern with a lower high and a lower low and a bearish gap above its head (24,127-23,997), signalling extension of the corrective decline for the third session in a row, according to Bajaj Broking’s Market Research.
On the upside, the zone of 23,930–23,960 is likely to act as a strong resistance, and any sustainable move above this hurdle would be required to regain positive momentum, Shah said.
ALSO READ: US Stock Market Today: S&P 500, Nasdaq Little Changed After Trump’s Rejection Of Iran Proposal
Bank Nifty
The Bank Nifty index finds immediate support in the 54,100–54,000 zone, according to Shah. “A decisive and sustained breach below 54,000 could trigger further downside, potentially dragging the index towards the 53,400 level,” he said.
The index is currently placed around the lower band of the last three weeks’ range of 54,000-56,500, as per Bajaj Broking. A breakdown below the same will open further downside towards 52,500 levels in the coming sessions, as per the brokerage.
“On the upside, the 54,900–55,000 zone is expected to act as a strong resistance, and a breakout above this range would be crucial for any meaningful recovery,” Shah stated.
Market Recap
Indian equity benchmarks ended the Monday session sharply lower, clocking their steepest fall since March 30, with Nifty 50 closing down 1.49% at 23,815.85 and the BSE Sensex falling 1.70% to 76,015.28. Investor wealth declined by about Rs 6.4 lakh crore.
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