Amid rising geopolitical tensions in the Middle East and mixed signals from global counterparts, the Indian stock market indices, Sensex and Nifty 50, are anticipated to open with a weaker tone on Monday.
The Gift Nifty’s tendencies similarly point to a slow start for the Indian benchmark indices. Compared to the previous close of 19,688 for Nifty futures, the Gift Nifty was trading at levels close to 19,648.
Conflict between Israel and Hamas broke out over the weekend, which can have an effect on market mood.
The local benchmark indices posted slight increases on Friday as a result of the Reserve Bank of India’s (RBI) decision to hold policy rates and stance steady. Sensex closed higher by 364 points at 65,995.63, while Nifty 50 gained 108 points to settle at 19,653.50.
On the daily chart, Nifty 50 created a tiny positive candle with a faint upper and lower shadow. The weekly chart shows that Nifty 50 formed a small bullish hammer pattern with a substantial lower shadow.
“A bullish hammer-like candlestick pattern is developing close to the support of the 20-week EMA (Exponential Moving Average). Technical analysis expert Nagaraj Shetti with HDFC Securities stated, “After crossing below it intraweek, Nifty has managed to reclaim the 20-week EMA support again, post a 10-week EMA support violation intraweek.”
He thinks that the Nifty 50’s short-term trend has changed for the better, and the overall chart pattern indicates that Nifty may be hinting at overhead resistance around levels around 19,800 for the upcoming week.
Investors are uneasy due to the Israel-Palestine conflict as the Indian stock benchmarks, Nifty 50 and Sensex, beginning the week with a loss of almost 1%.
Nifty 50 down 0.90 percent in the first hour of trade to reach 19,480.50 from where it started the day at 19,539.45. The Sensex, on the other hand, started the day at 65,560.07, down 0.85 percent, and fell as the day progressed to 65,434.61.
Nifty 50 eventually closed at 19,512.35, down 141 points, or 0.72 percent. At 65,512.39, the Sensex finished the day down 483 points, or 0.73 percent.
BSE Smallcap Index down 1.72 percent at closing, while BSE Midcap Index fell 1.22 percent.
Investors experienced a loss of about 4 lakh crore in a single session as the total market capitalization of BSE-listed companies declined from roughly 319.9 lakh crore in the previous session to roughly 315.9 lakh crore.
Let’s examine five significant variables that appear to be affecting market sentiment:
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Geopolitical Tensions: Due to the continuous Israeli-Palestinian conflict, the market is unclear, which makes traders cautious.
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Market Open: The day’s trading got off to a bad start as both the Nifty 50 and the Sensex opened lower.
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Both indices suffered intraday volatility during the trading day, with the Sensex falling to its intraday low.
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Midcap and Smallcap Indices: Reflecting the general market gloom, the BSE Midcap and Smallcap indices also experienced large drops.
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Market Capitalization: In line with the severity of the market fall, the total market capitalization of BSE-listed companies declined.
These elements worked together to give the Indian stock market a gloomy start to the week. Investors attentively watched domestic and international news for prospective effects on market dynamics.
Technical Analysis of the Nifty 50
Investors can learn more about the technical side of the Nifty 50 according to Santosh Meena, Research Head at Swastika Investmart.
Meena emphasizes the importance of the demand zone between 19,300 and 19,250 from a technical perspective. The possibility of the market remaining in a sideways movement and encountering a substantial obstacle around 19,800 increases until it stabilizes inside this range.
A breach below the 19,250 mark might signal the start of a robust downturn that might take prices down to about 18,800. It is advised for short-term traders to use prudence and refrain from acting quickly. On the other hand, this correction may offer long-term investors a fantastic purchasing opportunity, enabling them to make acquisitions.
For More
\Fundamentally, according to technical analysis, the Nifty 50 is now trading within a critical range, and investors should closely watch these levels to make wise choices in the volatile stock market environment.
