India's benchmark equity indices closed with marginal gains on Monday amid uncertain global cues regarding the US-Iran war in the Middle East. Going ahead, Nifty is expected to remain in the consolidating phase amid elevated volatility.
"The index formed a high wave candlestick pattern with a higher high and a higher low signaling consolidation around the 50 days EMA," said analysts at Bajaj Broking Research.
However, Shrikant Chouhan, Head Equity Research at Kotak Securities points out that the short-term texture of the index remains positive, so long as it is able to sustain above the 24,500 level.
The zone of 24,230–24,200 is expected to act as an important support area for the index, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
On the upside, the 24,480–24,500 zone will continue to act as a crucial resistance, as selling pressure has previously emerged near these levels, Shah highlighted.
Bank Nifty
The Nifty bank index was torn between the bulls and the bear after opening with a modest gap up and trading range bound through the day, as per Sachin Gupta, VP- Research at Choice Broking.
"On the daily timeframe, the index formed a spinning top-like candlestick pattern, indicating indecision and a balance between buyers and sellers," Gupta added.
Immediate support for the index is placed in the 56,000–56,100 zone, while resistance is observed in the 57,000–57,100 range.
Market Recap
Indian equity benchmarks ended little changed after a topsy-turvy trade on Monday amid weak global cues over renewed tensions in the middle east. The NSE Nifty 50 and the BSE Sensex ended marginally higher at 24,364 and 78,520.30 respectively.
Meanwhile, Crude oil prices climbed on Monday as Middle East tensions rose after attacks on commercial ships near the Strait of Hormuz.
Broader markets underperformed the benchmark. Nifty MidCap 150 ended down 0.3%, while Nifty SmallCap 250 fell over 0.5%. PI Industries, Godfrey Phillips, IEX and GMDC were among the key losers.
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