Indian stock market: Indian benchmark indices Sensex and Nifty declined on Monday, pressured by losses in financial and IT sectors. Investor sentiment stayed subdued due to ongoing concerns over global trade tariffs and weaker-than-expected quarterly earnings from Tata Consultancy Services, the country’s top IT company.
The BSE Sensex fell by 337 points, or 0.40%, to 82,182, while the NSE Nifty dropped 92 points, or 0.37%, to 25,057.
“ Following a week long consolidation and a break down on Friday, only 24% of Nifty 50 constituents ended up closing above their respective 10 day SMAs. This is the lowest number since early June. Parabolic SAR has also given a sell signal for the first time since late June,” said Anand James, Chief Market Strategist, Geojit Investments Limited.
On Friday last week, benchmark indices extended their losing streak for the third straight session on July 11, dragged by weakness in IT stocks post-TCS earnings and concerns over potential global trade disruptions following former US President Trump’s tariff remarks. The Nifty 50 closed the week at 25,149.85, down 205 points or 0.81%, breaching the crucial support zone near 25,330.
Key technical levels to watch out this week –
Nifty 50
According to brokerage firm Choice Broking, Nifty has broken below its previous swing low on the daily chart, indicating that the index is undergoing a short-term corrective phase from higher levels.
” The price is now approaching the key Fibonacci support zone near 25,000, where a reversal signal may emerge, given that the broader trend remains bullish.
Momentum indicators show weakening sentiment. The RSI is at 48.75 and trending downward, while the MACD has given a negative crossover, both suggesting caution. A close above 25,330 could reignite bullish momentum, potentially targeting 25,670–26,000. On the downside, if 25,000 breaks decisively, the next support lies at 24,750,” it said.
Support Levels: 25100-25000
Resistance Levels: 25300-25600
Bank Nifty
On Friday, the Bank Nifty index closed at 56,754.70, registering a 0.49% decline from the previous week’s close. The weekly chart indicates rejection at higher levels, as the index failed to sustain above the crucial 57,000 mark.
The brokerage firm said that this selling pressure suggests a potential pause in the ongoing uptrend, pointing towards a likely sideways to bearish or consolidation phase in the near term.
” On the weekly timeframe, Bank Nifty is trading above all its key moving averages, including the short-term 20-day, medium-term 50-day, and long-term 200-day Exponential Moving Averages (EMA), indicating an overall uptrend. However, the selling pressure at higher levels and the inability to sustain above the crucial 57,000 mark suggest that the index is entering a consolidation phase. Key downside support is placed in the 56,500–56,000 range. The Relative Strength Index (RSI) stands at 63.83, indicating a sideways momentum. This consolidation phase could lead to either a time-wise or price-wise correction as the index awaits fresh triggers for its next directional move.
The Bank Nifty index is likely to face significant resistance in the 57,000–57,500 range. If the index continues to move higher, Kotak Bank from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, SBIN is anticipated to show strength and contribute to any potential upside,” it said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
