The 21-day simple moving average provides crucial support and resistance levels for NSE Nifty 50, guiding traders with a buy-on-dips strategy, according to analysts.
"The 21-DSMA (for Nifty) is placed near 23,270 levels, which will act as immediate support for index, followed by 23,000 levels, while 23,640 will serve as short-term resistance for index," Hrishikesh Yedve, research analyst at Asit C. Mehta Investment Interrmediates Ltd., said. "If the index holds 23,000, traders are advised to follow a buy-on-dips strategy."
Since the Nifty looks weak, it can shortly break its support levels, according to Rupak De, senior technical analyst at LKP Securities. "The NSE Nifty 50 sentiment appears fragile, and support may be broken in the near term. On the lower end, support is placed at 23,200/23,100, while on the higher end, resistance is placed at 23,400," he said.
Level-based trading looks ideal for a volatile and non-directional market, according to Shrikant Chouhan, head of equity research at Kotak Securities.
Chouhan said the 20-day simple moving average for the Nifty 50, along with support levels of 23,270 and 23,220 would act as key support zones While resistance areas for the bulls are around 23,500 and 23,550, he said. "However, if the market dips below 23,220/76,800, it may retest the levels of 23,100/76,500."
Market Recap
The NSE Nifty 50 and BSE Sensex settled in losses on Monday as risk-off sentiment drove money out of the domestic markets on fears of potential trade wars in the wake of tariff impositions by the US. Larsen & Toubro Ltd. and Reliance Industries Ltd. share prices dragged the benchmark Nifty the most.
The Nifty 50 ended 121.10 points or 0.52% down at 23,361.05, and the Sensex ended 319.22 points or 0.41%, down at 77,186.74.
FII/DII Activity
Foreign portfolio investors stayed net sellers of Indian equities for the 23rd straight session on Monday as they sold stocks worth approximately Rs 3,958.4 crore.
Domestic institutional investors were net buyers for the 34th consecutive session as they mopped up equities worth Rs 2,708.2 crore, according to provisional data from the National Stock Exchange.
F&O Cues
The Nifty February futures were down 0.49% to 23,440 at a premium of 78.95 points, with the open interest down by 0.51%.
The open interest distribution for the Nifty 50 Feb. 6 expiry series indicated most activity at 24,000 call strikes, with the 21,100 put strikes having maximum open interest.
Stocks To Watch
Welspun Enterprises: The company approved the sale of 19% stake of Welassure to Rakshak Securitas.
Cipla: The company will invest 900 million South African Rand in equity share capital of wholly owned subsidiary Cipla Medpro South Africa Proprietary Ltd. The investment will be utilised to reduce inter-group debt and improve the capital structure of the subsidiary.
Ganesha Ecosphere: The company’s arm will set up a greenfield project of 67,500 tonnes per annum in Odisha. The arm plans to expand the capacity of Warangal plant from 42,000 TPA to 64,500 TPA.
HFCL: The company has decided to temporarily halt its planned Optical Fiber Cable manufacturing project in Poland. Instead, it will leverage its competitive advantage by serving European customers directly from its Indian manufacturing facilities.
Global Cues
Stocks in the Asia-Pacific region advanced after Monday's global rout as the US President Donald Trump shelved his Tariff plans by one month, easing the global trade war tensions.
Japan's Nikkei was up 580 points, or 1.52% at 39,105 while South Korea's Kospi rose 1.8%, or 46 points to 2,498 as of 7:15 a.m. Future contracts in Hong Kong and US hinted at a negative start for the stocks.
Trump put the escalating trade war on hold by delaying the tariff hike on Canada and Mexico by one month as countries worked out peace measures. The latest delays in implementation come just a day after stock markets globally were jolted by a potential trade war.
The US President did not announce a pause on China tariffs, but he has a planned phone call with President Xi Jinping later this week. Tariffs on China is due to take effect at 12:01 a.m. on Tuesday, Washington time.
The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — was 0.23% down at 108.73. Crude oil prices fell on the delay of a trade war.
Stocks on Wall Street declined on a potential trade war impact if the tariff measures were implemented. The S&P 500 and the tech-heavy Nasdaq Composite fell 0.76% and 0.28%, respectively. The Dow Jones Industrial Average slipped 1.20%.
China Caixin services PMI data on Wednesday, UK rate decision on Thursday and the India rate decision on Friday will be the key data points to watch out for this week.
Money Market Update
The Indian rupee depreciated 58 paise to close at 87.195 against the US dollar on Monday as compared to 86.61 in the previous session.
After opening, the local currency fell 55 paise to 87.17 against the greenback before it further dropped by 65 paise during the day to a fresh record low of 87.26 against the dollar, according to Bloomberg data.
RECOMMENDED FOR YOU
Trade Setup For June 30: Nifty's Resistance Moves Towards 26,000
Jun 29, 2025
Trade Setup For June 27: Nifty's Resistance Moves To 25,200 After Third Straight Day Of Gains
Jun 26, 2025
Trade Setup For June 26: Nifty's Support Shifts To 25,100 Level After Second Consecutive Day Of Rise
Jun 25, 2025
Trade Setup For June 19: Nifty Support At 24,725
Jun 18, 2025
POPULAR