The NSE Nifty 50 index finds support in the 23,880–23,850 levels, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
"A sustained break below 23,850 may revive selling pressure and drag the index toward 23,700," Shah said. "On the upside, the 24,130–24,150 zone will act as the immediate resistance, and only a breakout above this band may extend the recovery," he added.
The Nifty has formed a bullish candle with a lower high and a lower low and a bearish gap above its head, according to Bajaj Broking's market research. This signals a partial pullback after a gap down opening, the brokerage said.
"Overall bias continues to remain down. Volatility is likely to remain elevated amid uncertain global cues, rising crude oil prices and escalating geo-political tension," Bajaj Broking said.
"Going ahead index holding above the support of 23,700 will signal a pullback towards 24,400-24,500 levels in the coming sessions. Failure to do so will lead to extension of the decline towards 23400-23,200 levels," it added.
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Bank Nifty
The Bank Nifty Index finds immediate support in the 55,600–55,500 zone, according to Sudeep Shah.
The index formed a high wave candle with small real body and long lower shadow and a bearish gap above its head, signaling a pullback from the day's low, according to Bajaj Broking.
"A sustained break below 55,500 may extend the decline towards 54,900, followed by 54400. On the upside, the 56,500–56,600 band will remain the crucial resistance zone, and only a breakout above this level may trigger a meaningful recovery," Shah said.
The index's failure to hold above 55,200 levels will lead to extension of the decline towards 54,500-54,000 levels in the coming sessions, Bajaj Broking said.
Market Recap
Indian equity benchmarks ended Monday's session off their intraday lows after crude oil prices retreated sharply from earlier highs, easing some pressure on global markets. The Nifty 50 closed 1.74% lower near the 24,000 mark, while the Sensex ended nearly 1,400 points lower around 77,500 after a volatile trading session.
Both indices had fallen much more sharply earlier in the day as the surge in oil prices and global market weakness triggered risk aversion among investors. The Sensex had dropped as much as 2,994 points, or 3.2%, to an intraday low of 76,424.55, while the Nifty declined as much as 3.1% to 23,597 before recovering part of the losses. The selloff had pushed both benchmark indices into correction territory earlier in the session, with the Nifty falling more than 10% from its record high and the Sensex declining about 11% from its peak.
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