According to Bajaj Broking, Indian benchmark indices ended the session lower after recent talks between the US and Iran failed to yield an agreement. Rising geopolitical tensions, along with a sharp increase in crude oil prices, led to a gap-down opening, pulling the Nifty below the 23,600 mark. However, the index staged a strong intraday recovery of nearly 300 points from the day’s low, eventually closing above 23,800. 

By the close, the Sensex had declined by 702.68 points, or 0.91%, to settle at 76,847.57, while the Nifty fell 207.95 points, or 0.86%, ending at 23,842.65. Sector-wise, the weakness was widespread, with all major sectors finishing in the red. Nifty Auto, Oil & Gas, and FMCG stocks saw the steepest declines, reflecting the lack of sectoral support during the session. The absence of defensive buying further weighed on the markets, although most sectoral indices managed to recover a significant portion of their intraday losses. Broader markets followed a similar trend, with the Nifty Midcap and Smallcap indices declining by 0.57% and 0.46%, respectively, largely in line with the benchmark indices.

Nifty Outlook

Index on Monday’s session has formed a bullish candle with a lower high and a lower low as it opened gap down but managed to recover around 300 points from the day’s low highlighting buying demand at lower levels around the 20 days EMA. As mentioned in earlier edition Index has witnessed a 1800 points up move in just six trading sessions which has pushed the daily stochastic oscillator into overbought territory. Hence, some consolidation cannot be ruled out in the broad range of 23,100-24,100. Nifty has immediate support at 23,450-23,100 levels being the confluence of the last Wednesday gap area and 20 days EMA. Index sustaining above the same will keep the current pullback trend intact. While a breach below 23,000 will derail the positive momentum. On the higher side only a follow through strength above 24,100 will open further upside towards 24,300 and 24,700 levels over the coming sessions.

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Bank Nifty Outlook

Index on Monday’s session has formed a bullish candle with a lower high and a lower low as it opened gap down but managed to recover more than 1100 points from the day’s low highlighting buying demand at lower levels around the 20 days EMA. As mentioned in earlier edition index has witnessed 6000 points up move in just six trading sessions which has pushed the daily stochastic oscillator into overbought territory. Hence, some consolidation cannot be ruled out in the broad range of 53,000-56,200. Bank Nifty has immediate support at 53,500-52,500 levels being the confluence of the last Wednesday gap area and 20 days EMA. Index sustaining above the same will keep the current pullback trend intact. While a breach below 52,500 will derail the positive momentum. On the higher side only a follow through strength above 56,200 will open further upside towards 57,300 and 58,000 levels over the coming sessions being the 61.8% retracement of the recent decline 61,764-49,955.