Indian stock market benchmarks began the trading week with a clear negative bias on Monday. Market participants witnessed a decline in global risk appetite, which directly impacted opening sentiments. New international trade concerns triggered what analysts are calling "Tariff Tantrums," creating a cautious atmosphere across global markets.
Market Opening and Early Performance
The Sensex and the Nifty 50 both opened significantly lower. Investors grappled with the absence of strong domestic catalysts to counter the global headwinds. This led to a simultaneous drop in both indices during the early trading hours.
At 12:31 PM IST, the Sensex stood at 83,032.55. This represented a sharp decline of 532.80 points, or 0.64 percent. Similarly, the Nifty 50 was trading at 25,526, down by 169.45 points, or 0.67 percent. The weak start was anticipated earlier, as market futures indicated a drop of nearly 150 points before the official session even began.
Analyst Views on Nifty 50 and Bank Nifty
Nifty 50 Outlook
Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities, shared his perspective. He noted that the underlying trend for the Nifty 50 remains choppy within a broader high-low range. Bulls could potentially regain control if the index makes a decisive move above the 25,900–26,000 zone.
Conversely, a slip below the crucial 25,500 support level risks triggering sharp near-term weakness. A sustainable breakout above 26,000 could set targets around 26,300. However, a breakdown below 25,500 might drag the index down to 25,150–25,100 over the coming weeks.
On the monthly long-term chart, the overall trend stays positive. Rajani views the current consolidation or weakness as a potential buying opportunity near lower support levels.
Bank Nifty Outlook
The underlying trend for Bank Nifty holds positive. A decisive breakout above 60,500 could open medium-term targets of 61,300 and higher. The crucial support level for any trend reversal lies at 59,300.
Broader Market Behavior
Broader market indices showed signs of consolidation this week. They managed to notch slight recoveries from their recent lows, following a sharp fall in the previous week. However, midcap and smallcap segments require further upside movements to confirm a meaningful bottom reversal.
ETF Investment Picks
Analysts highlighted specific ETF opportunities for investors considering current market conditions.
Mirae Asset Nifty Metal ETF (METAL)
The recommendation is to buy at ₹11.65 with targets set at ₹12.60 and ₹13.50. A stop-loss is advised at ₹11. The index has broken out from an upward sloping trend line on monthly charts. It displays higher tops and higher bottoms on weekly and monthly charts. The index sits above all key moving averages, indicating an uptrend across all time frames. The monthly RSI sustains above 50, suggesting a sustained uptrend. The MACD remains above the signal and zero line on both weekly and monthly charts. Price rises are accompanied by healthy trading volumes.
NIPPON INDIA ETF HANG SENG BEES (HNGSNGBEES)
The suggestion is to buy at ₹548 with a target of ₹585 and a stop-loss at ₹525. This ETF has been forming higher tops and higher bottoms on weekly charts. It is positioned above all key moving averages, confirming an uptrend on all time frames. The weekly RSI sustains above 50, indicating a continued uptrend. The MACD stays above the signal and zero line on weekly and monthly charts. Price increases come with healthy volumes. Short-term moving averages are placed above long-term moving averages.
Disclaimer: The views and recommendations presented in this article belong to individual analysts. They do not represent the views of Mint. We strongly advise investors to consult with certified experts before making any investment decisions.
