After a 600 point 'bloodbath' Indian equity futures indicated a gap-up open after US President Donald Trump hinted at a deal with Iran amid talks with a top official. GIFT Nifty jumped over 4% or 934.50 points after the announcement as of 8:30 p.m. IST., indicating an opening in the green for the upcoming sessions.
"Emotions driven news will drive the market whenever such geopolitical factors. There are no support and resistance... by and large irrelevant in such a market," said Kranthi Bathini, director - equity strategy, WealthMills Securities Pvt.
However, before the announcement, analysts expected Nifty to see upside resistance at 22,850 and 22,900. "Near-term floor now eyes 22,400, beyond which a breakdown could drag the index toward its 52-week low of 21,743," said Vinay Rajani, Senior Technical Research Analyst, HDFC Securities. Technically, the index continues to show a bearish bias in both the short and medium term, as it is forming a pattern of lower highs and lower lows, added Bajaj Broking.
On daily charts, Nifty has formed a long bearish candle, and on intraday charts, it is holding a lower top formation, which indicates further weakness from the current levels, pointed Shrikant Chouhan, Head Equity Research, Kotak Securities.
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The Nifty is attempting to stabilise near the 22,500 zone, said Hariprasad K, Research Analyst and Founder, Livelong Wealth. "A decisive breach below this level could accelerate the downside towards 22,300, followed by the critical 22,000 zone, which acts as a major structural support backed by strong positioning," he added.
Volatility is expected to remain elevated in the near term, driven by rising geopolitical tensions, and rising crude oil prices which continue to weigh on overall market sentiment.
Nifty Bank
According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities Bank Nifty is now down by nearly 17% from its all-time high in just 33 trading sessions, marking one of the sharpest corrections in recent times. "Technically, the set-up remains weak, with all key indicators pointing towards sustained bearish momentum," Shah added.
Looking ahead, 51,900–52,000 zone will act as an immediate resistance for Nifty Bank.
Market Recap
Indian equity benchmarks resumed declines after a one-day breather on Friday. The BSE Sensex closed 2.46% lower, or 1,836 points, to 72,696.39 and the NSE Nifty 50 fell as much as 2.6% to 22,512.65. Intraday, Nifty 50 fell 2.78% to 22,471.25 and Sensex was down 2.65% to 72,558.44. All 15 sectoral gauges compiled by thee NSE traded lower, led by the NSE Nifty Metal Index's 4.8% fall.
Meanwhile, the rupee hit fresh record low and closed 25 paise lower at 93.95 against the US dollar. Besides, Brent crude for May delivery rose 1% to $113.32 a barrel, reversing earlier losses.
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