The Indian equity market extended its losing streak for the fourth consecutive session on Monday, with benchmark indices closing in the red amid broad-based selling pressure. The sentiment remained weak as investors engaged in profit-booking across multiple asset classes, including equities, bullion, and cryptocurrencies.
Market Indices in the Red
The key benchmark indices witnessed a significant decline. The Nifty 50 index dropped 100 points to finish at 25,942, slipping below the psychologically important 26,000 mark. The BSE Sensex was not spared either, shedding 345 points to close at 84,695. The banking sector index, Bank Nifty, also ended lower, declining by 79 points to settle at 58,932. Mirroring the spot market, the Nifty 50 Futures contract lost 104 points, closing at 25,955.
Sectoral Performance and Broader Sell-off
The sectoral performance was mixed but skewed towards losses. The Media Index managed to gain 0.75%, offering some respite. However, the Consumer Index bore the brunt of the selling, losing nearly 1% to emerge as the worst-performing sector for the day.
The sell-off was not confined to equities alone. The markets witnessed what analysts termed a "financial bloodbath" across assets. On the Multi Commodity Exchange (MCX), gold prices corrected by approximately ₹5,000, ending at ₹1,34,887 per 10 grams. Silver rates fell sharply by ₹529 to ₹2,23,900 per kg. This represented a steep decline of ₹30,274 from the new peak of ₹2,54,174 it had hit in early morning trades.
The cryptocurrency market mirrored this trend. Bitcoin, the primary digital asset, saw strong profit-booking, with its price sliding from ₹78,90,017 to ₹78,35,321—a drop of roughly ₹55,000 from its previous close on Sunday.
Expert Technical Outlook and Key Levels
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that market sentiment has weakened slightly following the participatory selling. She highlighted that the Nifty 50 index has moved closer to its crucial 50-day Exponential Moving Average (EMA) support, which is positioned at 25,850.
"The Nifty 50 index continues to slip down, extending the losses for the 3rd consecutive session, moving below the 26,000 zone," Parekh stated. She added that with the calendar year ending, trading activity has slowed down. For the bulls to regain control, the index needs to decisively break above the 26,250 level on a closing basis.
Regarding the Bank Nifty, Parekh described the session as lacklustre, with sluggish movement and low participation. She indicated that the index is in a consolidation phase, with strong support near the 58,700 zone. A fresh upward move, she said, would require a decisive breach above the 59,800 level.
Parekh identified the immediate support for the Nifty 50 at 25,800, with resistance at 26,200. For the Bank Nifty, she expects a daily trading range between 58,600 and 59,400.
Today's Stock Recommendations by Vaishali Parekh
For intraday trading on Tuesday, Vaishali Parekh has recommended three stocks:
- IOC (Indian Oil Corporation): Buy at ₹162, target ₹167, stop loss ₹157.
- Ashok Leyland: Buy at ₹176, target ₹183, stop loss ₹172.
- Max Healthcare: Sell at ₹1067, target ₹1045, stop loss ₹1073.
Disclaimer: The views and recommendations above are those of the individual analyst. They are not investment advice. Investors are advised to consult certified experts before making any investment decisions.
