- Nifty 50 recovered over 300 points from intraday lows to close marginally higher on Monday
- Nifty IT surged 2.43%, its biggest gain in over a month, supporting the overall market rebound
- Index remains below 20-day and 50-day moving averages, signaling cautious market sentiment
The Nifty 50 recovered more than 300 points from the day's low on Monday after buyers emerged near lower levels, helping the index erase opening losses and close marginally higher ahead of the weekly expiry.
The index opened lower amid weak global cues and slipped to an intraday low of 23,317.10 in early trade. Buying interest near the lower Bollinger Band triggered a sharp recovery, with Nifty filling the opening gap before ending 6.45 points, or 0.03%, higher at 23,649.95.
Strength in Nifty IT and Nifty Pharma supported the rebound. Nifty IT rose 2.43%, marking its sharpest single-day gain in more than a month.
Despite the recovery, the broader market structure remains cautious as the index continues to trade below key moving averages. The next decisive close may determine the near-term direction, especially with weekly expiry scheduled on Tuesday.
Resistance Zone In Focus
The recovery helped Nifty form a bullish candle with a long lower shadow, indicating buyers stepped in after the sharp intraday decline.
However, the index remains below both the 20-day and 50-day moving averages, which continue to trend lower. Nifty is currently trading around 0.5% below the 50-DMA, suggesting follow-through buying is still required for momentum to strengthen further.
The index has largely stayed within the range of the bearish candle formed on May 12, 2026. While Nifty briefly moved around 100 points above and below that range on an intraday basis, it has not delivered a decisive close outside the band.
A breakout on either side of this range may determine the next directional move.
Immediate resistance is placed between 23,758 and 23,860. A close above this zone may improve sentiment for bulls. If Nifty sustains above the range, the next level to watch is the 20-DMA near 24,011.
On the downside, support is seen at 23,420, followed by 23,262.
Momentum Indicators Stay Mixed
The 14-period daily RSI remains below the 50 mark, indicating momentum has not yet turned positive. On the hourly chart, RSI is hovering near the neutral 50 level.
A sustained move above 60 on the hourly RSI may provide the first sign of stronger upside momentum. Failure to hold higher levels may trigger profit booking again.
With weekly expiry due on Tuesday, volatility may remain elevated. While Nifty has shown buying interest at lower levels, bulls still need a decisive close above resistance to regain control.
Stock Of The Day: Dr Lal PathLabs Nears Breakout
Dr Lal PathLabs is trading near a potential breakout zone formed by a horizontal trendline connecting highs since November 2025.
The stock moved above the trendline on an intraday basis but failed to hold gains and closed below the breakout level.
The stock formed a bullish candle on May 4 alongside record volumes. Since then, it has moved higher despite some profit booking at elevated levels. The stock continues to consolidate within the upper quartile of the May 4 candle, indicating buyers are still active at higher levels.
On the hourly chart, the stock has broken above the neckline of a double bottom pattern, supporting the short-term setup.
The 14-period daily RSI has moved into a bullish range and continues to trend higher. The MACD histogram also points to improving momentum.
Trend strength remains firm, with the ADX near 38 and the +DI line above 31, suggesting buyers remain in control.
The stock needs to sustain above the Rs 1,653-Rs 1,657 zone to confirm a breakout on the daily chart. On the upside, the stock may test Rs 1,753, followed by Rs 1,790. Key support is placed at Rs 1,565.
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