Indian equity benchmarks closed Monday’s trade largely flat, bringing an end to a two-session rally as investor sentiment was dampened by persistent foreign fund selling and prevailing uncertainty surrounding a possible US trade deal. The subdued closing performance reflected caution in the market, with early advances being pared through the session.
At the close, the BSE Sensex settled marginally lower at 85,213.96, down 53.70 points, or 0.06 per cent. The Nifty 50 also ended flat at 26,027.30, lower by 19.65 points, or 0.08 per cent. Market action remained highly selective, driven by movements within specific sectors.
Nifty Outlook
According to Bajaj Broking Research, the Nifty index formed a bullish candlestick pattern, which highlights buying demand at lower levels amid stock-specific action. The index is currently testing a significant resistance zone—a falling trendline joining the last two weeks’ highs, which also coincides with the 61.8% Fibonacci retracement level placed around 26,080. A sustained move above this resistance is critical and would open up further upside potential towards 26,200–26,300 in the coming sessions.
In the previous session, the Nifty demonstrated resilience by rebounding from the gap-up area of 25,900 established on Friday. Maintaining levels above this point is crucial for keeping the near-term outlook positive. Key support for the index is now positioned firmly in the 25,700–25,800 range. In the short term, the market is expected to remain range-bound between the support at 25,700 and the resistance at 26,300.
Bank Nifty Outlook
The Bank Nifty also closed with a positive technical structure, forming a bullish candlestick pattern with a similar open and low, underscoring robust buying demand at lower levels. The index found support near its 20-day Exponential Moving Average (EMA). The Bank Nifty is currently testing a crucial trendline resistance placed around 59,500. A definitive breakout and follow-through strength above this 59,500 level would clear the path for the index to retest its all-time high of 60,100 in the sessions ahead.
