The Indian stock markets kicked off the first trading day of the week with caution, reflecting weakness after a volatile end to last week. Despite hitting record highs earlier, Nifty 50 saw a sharp correction in Friday’s session, indicating a potential cooling-off period for the markets. This resulted in a “Bearish Engulfing” pattern on the weekly charts, which is typically seen as a short-term bearish signal. Additionally, the Relative Strength Index (RSI) on the daily chart has shown a negative crossover, further solidifying the short-term downward sentiment.
The immediate support for Nifty is pegged around the 24,600 mark, a level that traders will watch closely. A breach below this could trigger a further decline towards the 23,900–24,000 range. Sector-wise, most indices are showing signs of weakness, with the exception of Consumer Durables and Pharma, which remain relatively strong. Meanwhile, the Bank Nifty index continued its corrective phase, with immediate support placed around 50,370, and a further fall expected if this level is breached.
Broader market movements have also been impacted by global trends. While U.S. and Asian markets did not present significant negative cues, the Indian market’s internal correction suggests some profit-taking and a potential short-term consolidation phase. Top gainers in early trading included Asian Paints and Bajaj Finance, while key banking and energy stocks, such as State Bank of India and Reliance Industries, were under pressure.
Investors and traders are advised to remain cautious, particularly in the banking sector, and focus on short-term trends. Any pullback should be approached as an opportunity to book profits, especially until the Nifty can convincingly break above the 25,300 level again.
