- Nifty faces resistance near 24,000 and support at 23,800, with choppy movements expected soon
- Bank Nifty support zone near 57,400–57,500 is crucial for maintaining its medium-term uptrend
- Nifty 50 fell 78 points, Sensex dropped 312 points on Monday, while pharma and healthcare sectors outperformed
The Indian equity benchmarks experienced profit booking at higher levels on Monday and closed in the red. However, some analysts remain cautiously optimistic for Nifty going ahead.
"Market participants will closely monitor the US-Iran negotiations in Qatar, with initial discussions centred on ensuring safe navigation through the Strait of Hormuz," said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services.
He added that until there is greater clarity on the durability of the ceasefire, geopolitical developments are expected to remain a key driver of global sentiment.
Accordingly, if Nifty breaches immediate resistance placed at 24,000 level, the rally could continue towards 24,150–24,200. On the flipside, immediate support for the index lies at 23,800 levels.
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"The intraday market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Notably, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities pointed out that Nifty might see more choppy movements in the next 1-2 sessions before bouncing back again from the lows.
Nifty Bank
The bias for bank Nifty index remains positive going ahead despite its recent correction according to analysts at Bajaj Broking Research and SAMCO Securities.
"The index has now approached a make-or-break support zone near 57,500–57,400, where buyers are expected to defend the ongoing medium-term uptrend," said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.
On the flipside, the index needs to reclaim 58,000, followed by a decisive move above 58,700 to resume the prevailing uptrend and target fresh highs.
Market Recap
Nifty 50 snapped its two-day winning streak to settle 78 points lower or 0.32% at 23,977, while the BSE Sensex settled 312 points or 0.40% lower at 76,788.27. Analysts highlighted that overall, selling was broad-based; however, defensive sectors such as pharma and healthcare outperformed, supported by their inelastic demand profile and earnings visibility.
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