The support level for NSE Nifty 50 has dropped to around 22,500 levels following five straight days of decline, analysts said on Monday, after the benchmark index settled over 240 points lower.
"On the downside, the index will find initial support at 22,500, followed by the 22,050 level, where the 100-weekly exponential moving average is positioned. Traders should monitor these levels for potential trading opportunities," according to Hrishikesh Yedve, assistant vice president for technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd.
On the upside, 22,700-22,800 will serve as a solid resistance zone, he added.
Broadly speaking, 21,500-22,500 is a strong long-term support zone for Nifty 50, said Kush Bohra, founder of KushBohra.com. "The index could attempt a pause and revival from this zone," he noted.
Rajesh Bhosale, technical analyst at Angel Broking, believes that the Nifty 50 is now looking at support levels between 22,400 and 22,800. The resistance is placed at 22,800 levels, he added.
"Nifty 50 has slipped below the crucial support level of 22,750-22,800. Now, the next support level appears to be 22,500," said Kranthi Bathini, director of equity strategy at WealthMills Securities Pvt.
Bank Nifty faces support at around 47,840 levels, while 49,650 will remain a challenging barrier for the index, Yedve said. "Traders should closely watch these levels for potential trading opportunities."
FII/DII Activity
Foreign portfolio investors stayed net sellers of Indian equities for the fourth straight day on Monday, while domestic institutional investors stayed net buyers for the 14th straight session.
FPIs offloaded stocks worth approximately Rs 6,286.7 crore and DIIs mopped up equities worth Rs 5,185.65 crore, according to provisional data from the National Stock Exchange.
F&O Action
The Nifty February futures were down 0.96% to 22,612.65 at a premium of 59.3 points, with the open interest down 22.69%.
The open interest distribution for the Nifty 50 Feb. 27 expiry series indicated most activity at 23,000 call strikes, with the 22,500 put strikes having the maximum open interest.
Market Recap
Indian benchmark indices extended their losses for the fifth consecutive session on Monday to end at the lowest since June 2024 as information technology and metal stocks dragged the indices. The benchmark indices are on track to close the month with the longest losing streak since November 1996.
The NSE Nifty 50 ended 242 points or 1.06% lower at 22,553.3, while the BSE Sensex closed 856.65 points or 1.14% down at 74,454.41. Intraday, Nifty fell as much as 1.22% to 22,518, while Sensex lost 1.23% to 74,907.
Infosys Ltd. and Tata Consultancy Services Ltd. were the top laggards while Mahindra & Mahindra and Kotak Mahindra Bank Ltd. gained during the session.
Major Stocks In News
Ireda: The shareholders of the company in an extraordinary general meeting approved to raise capital through issuance of equity shares.
NTPC and NTPC Green: The companies have signed multiple pacts cumulatively worth over Rs 2 lakh crore with the Madhya Pradesh government during the Global Investors Summit.
LIC: The company has received GST demand for Rs 57.3 crore including interest and penalty.
Apollo Pipes: The company has acquired an additional equity stake of 0.5% through a secondary purchase in Kisan Mouldings Ltd., its subsidiary.
Nazara Technologies: The company acquired 38.57% stake in Funky Monkeys for Rs 28.7 crore.
Welspun Specialty Solutions: The firm will issue 13.25 crore rights equity shares each for an amount aggregating up to Rs 349.86 crores.
Global Cues
Stocks in the Asia Pacific region continued to decline on Tuesday following US President Donald Trump's move to curb Chinese investments in technology, energy and other sectors. In addition, the fall in US stocks further hurt the market sentiments.
South Korea's Kospi fell 0.27%, or 7.05 points to 2,638.25, while Australia's S&P ASX 200 was down 0.82% at 8,239.80 as of 7:27 a.m. Japanese markets opened lower after a holiday on Monday.
Future contracts in China hinted at a negative start, while those in Hong Kong were also poised to a 2% drop. The Chinese gauge of shares in US saw its biggest drop in over four months with Alibaba Group Holding Ltd.'s American depository receipts closing over 10% lower. This is the biggest decline since October 2022.
Meanwhile, the euro was little changed while Canada's dollar and Mexico's peso fell, as US President Donald Trump said he expects the tariffs to take effect as planned next month.
The US dollar remained flat while the stocks got hammered on Monday. The S&P 500 fell 0.5% while the Nasdaq 100 slipped over 1%. The Dow Jones Industrial Average closed 0.08% higher on Monday. Ahead of Nvidia Corp's results, the chipmaker lost 3.1%.
The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — was 0.07% up at 106.75. The benchmark yield fell two basis points to 4.44%.
Crude oil prices rose after they began the week lower with the Brent crude rising 0.27% at $74.98 a barrel as of 7:25 a.m. IST, and the West Texas Intermediate was up 0.35% at $70.95.
Money Market
The Indian rupee ended flat against the US dollar at 86.71 on Monday, as per Bloomberg data. Earlier in the day, the local currency had opened 13 paise stronger at 86.58 against the greenback, but pared the gains as the session progressed.
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