Market Wrap

Indian equities extended their weakness on Monday, with the Nifty falling nearly 0.5% to 23,779.15 as selling pressure emerged soon after the opening bell. Although the index attempted a late-session recovery, it failed to hold the rebound, keeping the broader market tone cautious.

Renewed escalation in the US-Iran conflict and risks around the Strait of Hormuz remained the key overhang, pushing Brent crude close to $97 a barrel. Sustained higher oil prices could add pressure on India’s inflation outlook, the rupee and corporate margins, particularly across oil-sensitive sectors.

Global cues were mixed. Asian technology stocks, including the Nikkei and Kospi, posted strong gains, but the broader risk environment remained fragile as higher energy prices revived concerns over inflation and global interest rates.

What's Ahead

Tuesday’s session is likely to remain volatile, with traders closely tracking crude prices, developments around the Strait of Hormuz and FII flows. Upcoming US inflation data will be particularly important after stronger-than-expected employment data lifted expectations of a possible Fed rate hike at its September 16 meeting.

Domestic liquidity conditions will also remain in focus as the RBI conducts a ₹7 lakh crore, 30-day reverse-repo auction to absorb excess liquidity. The outcome could influence bond yields, banking stocks and broader financial conditions.

With the Nifty hovering near 23,800, the key technical question is whether the index can stabilise around current levels or face another leg of selling if crude remains elevated. Until global risks ease, the market is likely to favour quality balance sheets and defensive sectors, while stock-specific opportunities may continue to dominate.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 closed 0.50% lower at 23,779.15, extending its weakness amid broad-based selling and negative market breadth. The index remained under pressure throughout the session and closed close to the day’s low, while the RSI slipping below 40 indicates weakening momentum and a bearish near-term setup. Immediate support is placed at 23,628, followed by 23,534, while the 23,930–24,024 zone remains the key resistance area. Unless the index reclaims the resistance zone decisively, the near-term bias is likely to remain cautious to negative.

BankNifty

Bank Nifty declined 0.49% to 57,088.30, ending near the day’s low after remaining under pressure through the session. Extremely weak breadth, with only one constituent advancing against 13 declines, highlights the broad-based nature of the selling, while the RSI remains in bearish territory, pointing to continued momentum weakness. The index faces immediate support at 56,805, followed by 56,629, while resistance is placed at 57,372–57,547. A sustained move above the resistance zone would be needed to improve the technical setup; until then, the bias remains negative.

NIFTY FINANCIAL SERVICES

The Nifty Financial Services index slipped 0.44% to 25,935.60, with widespread weakness across financial stocks keeping the index under pressure. The sharply negative breadth, with just four stocks advancing against 16 declining, points to continued selling pressure across the sector. Immediate support is placed at 25,741, followed by 25,621, while 26,130–26,250 represents the key resistance zone. The near-term setup remains cautious, with a sustained recovery above resistance required to signal a meaningful improvement in momentum.

Sensex

The Sensex declined 0.50% to 76,132.81, weighed down by weakness across IT, metals, financials and infrastructure stocks. The index ended with distinctly negative breadth, with 23 stocks declining against just seven gainers, reinforcing the weak market structure. Immediate support is seen at 75,657, followed by 75,363, while resistance is positioned at 76,609–76,903. The near-term bias remains cautious to bearish, and the index would need to reclaim the resistance zone to regain upward momentum.