The benchmark index opened 22 points lower and remained under pressure through most of the session amid weak global cues and persistent geopolitical concerns.
Although the Nifty found support near its 100-day exponential moving average (100-DEMA) and recovered some intraday losses, it failed to sustain the rebound and settled 50 points lower at 24,187.
Among the Nifty constituents, Shriram Finance, Bajaj Finserv and Eicher Motors were the top gainers, while HDFC Bank, Infosys and SBI emerged as the biggest drags.
Sectoral performance remained mixed. Realty, auto and metal stocks ended in the green, while PSU banks, IT and oil & gas were the worst-performing sectors.
The broader market continued to outperform the benchmark, with the Nifty Midcap 100 rising 0.3% and the Nifty Smallcap 100 gaining 0.53%.
What to watch
Market participants are expected to remain focused on the ongoing Q1 FY27 earnings season, while geopolitical developments in West Asia, elevated Brent crude prices near $90 per barrel, continued FII selling, rupee weakness and global market sentiment are likely to dictate near-term direction.
Siddhartha Khemka of Motilal Oswal said stock-specific action is expected to dominate as earnings gather pace, although developments in West Asia and crude oil prices will continue to influence investor sentiment.
Investors will also track the European Central Bank’s monetary policy decision later this week for cues on the global interest rate outlook, while any progress in US-Iran diplomatic efforts will remain another key monitorable.
Companies scheduled to report June quarter earnings on Wednesday include SRF, Eternal, Nestle India, JSW Energy, HPCL, Adani Power, Adani Green Energy and Tata Communications.
In the primary market, SBI Funds Management ended its debut session with gains of around 6%. The IPO market is also set to remain active, with Lohia Corp, Indo-MIM and Xtranet Technologies opening their public issues this week, together aiming to raise around ₹5,079 crore.
Technical outlook
Nagaraj Shetti of HDFC Securities said the Nifty’s short-term trend remains choppy with a weak bias. However, as long as the index holds above the crucial 24,000 support level, a rebound towards the 24,400-24,500 zone remains possible.
Osho Krishan of Angel One believes the broader trend remains constructive while the index stays above the 24,100-24,000 support zone.
He sees immediate resistance in the 24,300-24,350 range, while a decisive move above 24,500 would be needed to trigger stronger upside momentum.
Nandish Shah of HDFC Securities noted that the Nifty’s trading range has narrowed to less than 200 points over the past five sessions, reflecting a sharp decline in volatility.
Shah added that while the market remains in a consolidation phase, the short-term trend is still positive as the index continues to trade above its 20-, 50- and 100-day EMAs. He expects immediate resistance around 24,530, with 24,000 remaining a key support level.
Rupak De of LKP Securities said the benchmark continued to lack directional momentum but managed to hold above its key moving averages. He expects the index to remain positive in the near term, with potential to move towards 24,400. On the downside, 24,150 is the immediate support, while a breach below that level could drag the Nifty towards 23,950.
