The Indian stock market is poised for a cautious start on Monday, with analysts predicting a potential extension of the recent correction. The Nifty index has broken below a rising trendline, signaling a bearish sentiment that could see it drift towards the 23,250 mark, while resistance is expected at 23,700.
Throughout the past week, the benchmark index faced resistance near the 50-day EMA, culminating in a sharp breakdown on Friday with a fall of over 350 points. Analysts from Bajaj Broking suggest that Nifty is likely to consolidate within the 23,200-24,000 range, with key support at 23,000-23,200 levels.
In terms of market activity, Bharti Airtel, Infosys, and HDFC Bank were among the most active stocks in value terms on the BSE, while Vodafone Idea and JP Power led in volume terms. Stocks like Netweb Technologies and Wockhardt showed strong buying interest, while Natco Pharma and Jyoti CNC faced selling pressure.
“The index has also broken below a rising trendline on the daily chart, indicating a resurgence of bearish sentiment in the market.”
Rupak De, Senior Technical Analyst at LKP Securities
The sentiment meter on Friday indicated a bearish trend, with 2,673 stocks declining out of 4,463 traded on the BSE. Despite this, some stocks like Netweb Tech and Thermax hit their 52-week highs, reflecting selective bullish interest.
"The index has also broken below a rising trendline on the daily chart, indicating a resurgence of bearish sentiment in the market," said Rupak De, Senior Technical Analyst at LKP Securities.
Background
The market's current trajectory is influenced by global economic uncertainties and domestic factors such as corporate earnings and policy developments. Investors are advised to keep a close watch on key support and resistance levels as well as broader market trends.
Looking ahead, market participants should monitor global cues and domestic economic indicators that could impact market sentiment. The ongoing earnings season and any policy announcements will also be crucial in shaping the market's direction.
