The index opened slightly lower and gradually weakened through the first half of the session. However, a recovery around mid-session, led largely by a rebound in the Nifty Bank index, helped the Nifty recover most of its early losses.
A late-session spike in volatility, however, weighed on the index and altered its closing trajectory, resulting in a lower finish.
Among Nifty constituents, Hindalco Industries and Tata Steel were the top gainers, while HCL Technologies and Infosys emerged as the biggest laggards.
On the sectoral front, Nifty Realty and Nifty Metal outperformed, while Nifty IT and Nifty FMCG ended as the biggest losers.
The broader market remained relatively resilient, with both the Nifty Midcap 100 and Nifty Smallcap 100 closing in positive territory.
What to watch
Indian equities are likely to remain range-bound as investors shift focus from the recently concluded Q1FY27 earnings season to global macroeconomic and geopolitical developments.
The Strait of Hormuz and crude oil prices are likely to remain key near-term drivers. Conflicting positions between the US and Iran have clouded hopes of an early resolution, keeping the risk of elevated crude prices in focus.
Investors will also track the US Federal Reserve’s July meeting minutes due this week for cues on the central bank’s interest-rate outlook.
Technical view
Hitesh Rathi, Angel One, said the technical setup remains cautious, with the Nifty slipping below its 20-day DEMA, signalling further deterioration in the near-term trend.
However, the inability of sellers to push the index below the previous week’s lows suggests some exhaustion in selling pressure.
The Nifty is now approaching its 50-day DEMA at around 24,192, where some buying interest could emerge. The 24,200 zone also gains significance as the 20-brick EMA on the 0.5% one-minute Renko chart is placed around the same level, he said.
According to Rathi, 24,250-24,200 is the immediate support zone, followed by stronger support at 24,100-24,000. On the upside, 24,450-24,500 is the immediate hurdle, followed by 24,650-24,700. A sustained move above 24,450-24,500 would be required to signal a meaningful reversal of the ongoing downtrend.
Om Mehra of SAMCO Securities sees immediate support at 24,190, followed by 24,050, while 24,500 remains the key resistance. A decisive close above 24,500 would be needed to revive the recovery attempt, he said.
Rupak De of LKP Securities said the near-term trend remains weak as the Nifty continues to trade below the crucial 24,400 resistance level. As long as the index remains below this level, the bias is likely to stay weak. On the downside, support is placed at 24,225, below which the correction could extend towards 24,190 and 24,050, he said.
Meanwhile, Bank Nifty outperformed the frontline indices on Monday. The banking index found support near its 50-day EMA and recovered from the day’s lows, although it eventually ended the session largely flat.
Sudeep Shah of SBI Securities said the 57,900-58,000 zone is likely to act as a crucial resistance area, while 57,100-57,000 remains an important support zone. A decisive breakout or breakdown from this range could determine the next directional move in Bank Nifty, he said.
