| Company | Value | Change | %Change |
|---|
A steep sell-off on Wall Street on Friday meant that the Nifty was all set for a gap down on Monday morning, even as Asian markets recovered and the US futures were well in the green from lower levels. No such exception though was made for the Indian markets as Dalal Street ended yet another forgettable day for the bulls near the lowest point of the trading session.
The only change that has taken place among the index watchers over the last few days and Monday is the change in levels. The bulls, until Monday, were desperate and fighting tooth and nail to defend the 22,800 mark. But with 22,800 gone now, and decisively at that, the level to watch on the downside is now fixated at 22,500.
There are some important global and local triggers that the market will have to watch this upcoming week, which is a truncated one for Indian equities. Of course, the tariff uncertainties with regards to Donald Trump remain, as do the fear of outflows from India and inflows into an outperforming Chinese and Hong Kong markets remain. Adding to that are results from Nvidia which will be reported later this week, along with the Personal Consumption Expenditure (PCE), which will be reported on Friday.
Despite the fall, brokerage are looking to turn constructive on Indian equities. Jefferies believes that a short-term bounce is in the offing for Indian markets as the valuations are now closing in on their long-term averages post the fall. Citigroup has also turned overweight on the Indian markets with a Nifty target of 26,000.
Foreign investors though were heavy sellers in the cash market yet again on Monday with a sell figure closing in on a billion dollars. Domestic institutions continued to absorb the selling pressure but were outmatched on Monday.
Vaishali Parekh of Prabhudas Lilladher believes that only a close above 23,000 will bring conviction back for the Nifty bulls and that 22,800 is now a near-term hurdle for the index. 22,400 now becomes a key support aon the downside and a close below that can open further downside targets of 21,600 to 21,500 levels.
The Nifty has broken down from a bearish flag and pole pattern, signalling the start of a correction, said Rupak De of LKP Securities. Immediate support is at 22,450 and a fall below that can take the index down to 22,200 or even lower. On the upside, immediate hurdles are placed at 22,670 – 22,700 levels.
Angel One’s Osho Krishnan is of the view that 22,500 – 22,400 level becomes crucial now for the Nifty and the ability to hold that level will determine whether further declines are in the offing or not. On the flip side, the bearish gap at 22,670 – 22,720 will act as a strong barrier.
The Nifty Bank fell for the third straight day on Monday, although it could be considered an outperformer as it did not fall as much as the Nifty did. Yet, the index has now lost nearly 1,000 points in the last three trading sessions, despite having recovered over 350 points from the lows of the session on Monday. The fall also means that the index now convincingly trades below the 49,000 mark.
Om Mehra of SAMCO Securities said that the support of the Nifty Bank is placed at the previous swing low of 47,844, while the resistance is at 49,150. However, a decisive move above 49,600 is essential for the bulls to reclaim their way and until then, the overall outlook is subdued.
On the charts, the Nifty Bank has formed a doji candle, indicating uncertainty and will find strong support around the 47,840 level, while 49,650 remains a key barrier, said Hrishikesh Yedve of Asit C Mehta Investment Interrmediates.
What Are The F&O Cues Indicating?
Short covering was seen in these stocks on Monday, meaning an increase in price but a decline in Open Interest:
| Stock | Price Change | OI Change |
| Coforge | 1.57% | -49.53% |
| Indian Bank | 1.95% | -45.62% |
| M&M | 1.50% | -43.00% |
| United Spirits | 2.40% | -42.12% |
| Glenmark Pharma | 2.27% | -39.14% |
Unwinding of long positions was seen in these stocks was seen in these stocks on Monday, meaning a decline in both price and Open Interest:
| Stock | Price Change | OI Change |
| Indraprastha Gas | -1.34% | -36.52% |
| Tech Mahindra | -2.04% | -36.27% |
| HCLTech | -3.46% | -36.23% |
| Bharti Airtel | -2.15% | -36.20% |
| NALCO | -5.22% | -36.07% |
