Global cues also played a role. Optimism surged in Asian markets after Washington and Beijing signalled alignment on key trade terms, propelling Japan’s Nikkei and influencing other major indices.
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Global cues also played a role. Optimism surged in Asian markets after Washington and Beijing signalled alignment on key trade terms, propelling Japan’s Nikkei and influencing other major indices.
Last Week’s Slide
Before Monday’s rally, Indian markets were under pressure. On Friday, the Sensex had dropped 880.34 points to settle at 79,454.47, while the Nifty 50 closed 265.80 points lower at 24,008.00, both falling around 1.10 per cent. Rising military tensions between India and Pakistan had cast a shadow over trading sentiment, leading to a selloff across sectors.
The Bank Nifty also closed sharply lower last week at 53,595.25, shedding 770.40 points or 1.42 per cent. The index has lost 2.76 per cent over the past week, breaking below the 21-day exponential moving average (EMA).
Technical Outlook
Analysts are divided over the medium-term trajectory despite the rebound. Amol Athawale, Vice President – Technical Research at Kotak Securities, noted:
“As long as Sensex remains below the 79,900 level, the weakness may persist. However, a move above this threshold could trigger a pullback rally towards 80,800.”
“A bearish engulfing pattern has emerged on the weekly chart, indicating a potential reversal. Strong supports lie at 23,600-23,800.”
“Participants should consider hedges and remain neutral rather than directional in trading. Nifty’s support is at 23,700-23,830 with resistance near 24,250.”
Bank Nifty Signals Volatility
Banking stocks, often sensitive to macro risks, showed pronounced weakness. Puneet Singhania of Master Trust Group said:
“Bank Nifty is in a bearish zone after closing below the 21-day EMA. Support lies at 52,900, while resistance is seen at 54,200. A move above that may see levels of 55,000.”
“The index could fall to 52,000 if selling pressure continues, although short-term resistance remains capped at 55,000.”
Bajaj Broking Research projected a broader consolidation phase:
“Bank Nifty is likely to trade between 53,000 and 56,000. The shallow retracement of its last rally suggests a pause rather than a reversal.”
