Market Plunge: Key Indices Tumble in Final Hour
Indian equity markets experienced significant pressure on Monday, with the benchmark indices surrendering to heavy selling during the final trading hour. The session, which had largely remained range-bound for most of the day, turned volatile ahead of the monthly derivatives expiry, leading to a sharp decline.
The Nifty 50 index concluded the day down by 108 points, while the Sensex dropped 331 points, or 0.39%, to settle at 84,900.71. This downturn was fueled by a combination of factors including anxiety around the interest-rate policy, continuous foreign institutional investor (FII) selling, ambiguous developments in global trade and tariffs, and an overarching weakness in the broader market.
Sectoral Performance and Broader Market Weakness
The sell-off was widespread, impacting most sectors. Leading the pack of losers was the Nifty Realty index, which plunged over 2%. Significant losses were also recorded in the Metal, Consumer Durables, Oil and Gas, Healthcare, FMCG, and Media indices.
Financials, Private Banks, and Pharma sectors witnessed marginal declines, whereas PSU Banks managed to hold nearly flat. In a contrasting performance, the Nifty IT index emerged as the sole outperformer, registering minor gains and providing some stability to an otherwise negative sectoral landscape.
The broader market faced even more intense selling pressure. The Nifty Midcap 100 index closed 0.32% lower, and the Nifty Smallcap 100 index fell more sharply, ending down by 0.85%.
Expert Technical Analysis and Stock Recommendations
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, shared her perspective on the market's trajectory. She described the current sentiment as 'cautious to positive,' noting that while the Nifty 50 has slipped below the 26,000 mark, it is holding above the crucial support level of 25,800. The index faced resistance at 26,150 for the second time.
On the daily chart, the Nifty 50 has formed a bearish engulfing pattern, indicating a slightly weakened bias. Parekh stated that immediate support for the Nifty is positioned at 25,800. A decisive move past the 26,200 resistance could open the doors for higher targets of 26,700 and 27,200 in the near future.
For the Bank Nifty, which found resistance near 59,300, the near-term support is at 58,000, with a major cushion at the 50-day exponential moving average (DEMA) of 57,300. A clear break above 59,500 is essential for the index to resume its positive trend. Parekh expects a daily range of 58,500 to 59,400 for the Bank Nifty.
Based on her analysis, Vaishali Parekh recommended the following trades for today:
- Tech Mahindra: Buy at ₹1490, Target ₹1600, Stop Loss ₹1460
- Tata Steel: Sell at ₹167, Target ₹160, Stop Loss ₹170
- Finolex Industries: Buy at ₹182, Target ₹190, Stop Loss ₹178
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
