Nifty Index Slips Below 23,850, Key Support Seen at 23,650

Indian Equity Markets See Volatile Session on Monday

The Indian equity benchmark indices, Sensex and Nifty, experienced a volatile session on Monday, with both indices settling nearly 1 percent lower due to concerns over a prolonged conflict between the US and Iran. The failure of US-Iran negotiations led to an increase in crude oil prices, which had a negative impact on the markets.

The Sensex, India's leading equity benchmark index, declined by 702.68 points or 0.91 percent to settle at 76,847.57. At its lowest point during the day, the Sensex plummeted 1,681.93 points or 2.16 percent to 75,868.32.

The Nifty, another key Indian equity benchmark index, opened sharply lower but managed to recover gradually due to buying in heavyweight stocks across various sectors. The Nifty eventually ended 207.95 points or 0.86 percent lower at 23,842.65.

Read also: SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

Analysts have identified the 23,650 level as a crucial support for the Nifty, following its slip below the 23,850 mark.

Market Expectations and Key Levels

According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the 23,950-23,980 zone is likely to act as a key resistance for the Nifty. A sustained move above 23,980 could extend the pullback rally towards 24,100, followed by 24,230 in the short term. On the downside, the 23,700-23,650 zone will serve as an immediate support zone for the index.

Broader Market Performance

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The broader market indices, Nifty Midcap 100 and Nifty Smallcap 100, also opened lower in line with the benchmark indices but recovered from intraday lows, indicating selective buying at lower levels.

Ajit Mishra, SVP, Research at Religare Broking Ltd, noted that the Nifty tested its crucial support at the short-term moving average near 23,500 and managed to recover. Sustaining above this level is essential for any further rebound, and failing to do so may lead to a negative bias. Traders are advised to remain cautious and focus on stock-specific opportunities based on relative strength, adopting a hedged approach.

Comparison of Key Indices

Note: The opening prices for the Sensex and Nifty are not provided in the original text and are therefore not included in the comparison table.