Indian equities ended sharply lower on Monday, with benchmark indices falling around 1% amid broad-based selling pressure. The decline has pushed the Nifty 50 close to the crucial 23,000 mark, with market experts warning that weakness could persist in the near term unless key resistance levels are reclaimed.
Analysts noted that the market structure remains weak, with lower highs on both daily and intraday charts signalling continued bearish sentiment. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market is currently exhibiting a lower-top formation, which supports the possibility of further downside.
“On daily and intraday charts, the market is holding a lower top formation, which supports further weakness from the current levels. As long as the market is trading below 23,250 and 73,800, weak sentiment is likely to continue,” Chouhan said.
He identified 22,950 on the Nifty and 73,000 on the Sensex as immediate support zones. A breach of these levels could trigger additional selling pressure, dragging the indices towards 22,800 and 72,500, respectively.
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On the upside, Monday’s high of 23,267 remains the immediate hurdle. A move above this level could open the door for a recovery towards the 23,500–23,550 zone, said Bajaj Broking Research.
Bank Nifty Outlook
The Bank Nifty also remained under pressure, although it managed to recover from intraday lows after attracting buying interest near the 54,000 region.
Ponmudi R, CEO of Enrich Money, said Bank Nifty’s inability to sustain above the 54,400–54,500 resistance band continues to keep the near-term outlook cautious.
According to him, a sustained move above 54,500 could trigger a recovery towards 54,800–55,000. However, a decisive break below the 53,800–53,600 support zone could accelerate selling pressure and lead to further weakness.
With momentum indicators remaining subdued and broader market sentiment turning cautious, traders are likely to closely monitor the 23,000 mark on the Nifty and the 53,800 support zone on Bank Nifty for the next directional move.
Market Recap
The BSE Sensex declined 0.97% to close at 73,524.26, while the NSE Nifty 50 fell 1.04% to end at 23,123. The benchmark indices extended losses for a second consecutive session, reflecting weak investor sentiment and heavy selling pressure across large-cap, mid-cap and small-cap stocks.
Broader markets underperformed the headline indices, highlighting the extent of the market weakness. The Nifty Midcap 150 index ended over 1.5% lower, while the Nifty Smallcap 250 index dropped more than 2%.
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