The index opened on a subdued note, with buyers initially attempting to support the market. However, selling pressure gradually intensified, dragging the benchmark down by more than 100 points. The Nifty later found support near recent lows and traded in a narrow range for the rest of the session before ending 0.46% lower.
Among Nifty constituents, Max Healthcare Institute and Dr Reddy’s Laboratories were the top gainers, while Kotak Mahindra Bank and Mahindra & Mahindra led the losses.
Sectorally, Pharma and Healthcare outperformed the broader market, whereas Auto, Media and Cement stocks witnessed the sharpest declines.
Broader markets also remained under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices ending in negative territory.
Going ahead, investor sentiment is expected to remain driven by geopolitical developments in West Asia, particularly the progress of US-Iran talks in Qatar and any developments related to the Strait of Hormuz.
Market participants are also expected to track crude oil prices, the progress of the southwest monsoon and activity in the primary market.
On the macroeconomic front, investors will monitor India’s industrial production data, Eurozone inflation, UK GDP, global PMI readings and the US non-farm payrolls report for further cues on global growth and the Federal Reserve’s interest rate trajectory.
Siddhartha Khemka of Motilal Oswal Financial Services said developments in West Asia, energy prices, the monsoon and IPO activity are likely to remain the key market drivers in the near term.
According to Nagaraj Shetti of HDFC Securities, the Nifty’s short-term trend has weakened and the index could witness another one or two sessions of range-bound movement before attempting a rebound.
He expects immediate support at 23,800, while 24,250 remains the first major resistance.
Sudeep Shah of SBI Securities said the 20-day and 50-day exponential moving averages, placed in the 23,850-23,800 zone, are expected to provide immediate support.
A decisive break below 23,800 could open the door for a decline towards 23,650, while the 24,070-24,100 zone is likely to cap any near-term recovery.
LKP Securities’ Rupak De said the Nifty remained under pressure throughout the session after slipping below its 50-hour exponential moving average. De expects volatility to remain elevated ahead of the NSE’s monthly derivatives expiry on Tuesday.
Despite the recent weakness, De believes the broader short-term trend remains constructive as long as the Nifty holds above the 23,800 level. He continues to recommend a buy-on-dips approach, with 24,200 likely to remain the immediate resistance.
