The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday, following mixed global market cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,173.50 level, a discount of 48.4 points from the Nifty futures’ previous close.
Sensex and Nifty 50, declined for the third straight day on Friday, dropping by nearly 1% due to significant selling in the IT, auto, and energy sectors amid a sluggish start to the earnings season.
Analysts pointed out that uncertainties surrounding tariffs and mixed signals from global markets further exacerbated the decline.
The Sensex fell by 689.81 points or 0.83%, finishing at 82,500.47. During the trading session, it saw a dip of 748.03 points or 0.89%, hitting a low of 82,442.25.
Similarly, the Nifty 50 decreased by 205.40 points or 0.81%, closing at 25,149.85. For the week, the BSE benchmark declined by 932.42 points or 1.11%, while the Nifty 50 dropped by 311.15 points or 1.22%.
Technical views by Rupak De, Senior Technical Analyst, LKP Securities on F&O market:
Nifty 50 remains under pressure, having breached the previous swing low on the hourly chart and slipped below the 21 EMA on the daily timeframe. Short-term momentum continues to be weak, as indicated by the RSI’s negative crossover. However, following the recent decline, the index is now testing support near the 200-hour moving average. A sustained move above the 25,150–25,160 zone in the early trades could pave the way for an upswing towards 25,250 and 25,400. On the downside, key support levels are seen at 25,090 and 24,900.
Open Interest Analysis: Significant open interest additions were observed in 25,000 Puts and while heavy OI additions were seen at 25,300 Calls; Put writings were relatively muted on Friday. Maximum OI buildup was seen at 25,500 CE. Meanwhile, substantial put writing at the 25,000 strike.
Strategy: As the index has reached near its support level, a small bounce from the current level can’t be ruled out.
Trade: Buy Nifty 17th Jul 25300CE Above 75 TGT 130 SL 44.
Buy Power Finance Corporation Ltd (PFC) at ₹431; Target price: ₹462; Stop Loss : ₹419
PFC share price has given a symmetrical triangle breakout on the daily chart, indicating bullish sentiment. Additionally, it has moved above the 200-DMA for the first time in several days. The daily RSI is in a positive crossover and trending higher. With strong price action and technical confirmation, the stock has the potential to move towards ₹462 in the short term. A long position can be considered with a stop-loss placed below ₹419.
Buy Netweb Technologies India Ltd at ₹1,947; Target price: ₹2,050; Stop loss: ₹1,900
Netweb Tech share price has given a consolidation breakout on the daily chart, indicating bullish sentiment. Additionally, it has moved above the 50-DMA for the first time in several days. The daily RSI is in a positive crossover and rising. With strong price action and technical confirmation, the stock has the potential to move towards ₹2,050 in the short term. A long position can be considered with a stop-loss placed below ₹1,900.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
