Benchmark indices opened on a cautious note Monday morning, with the Sensex gaining marginally while the Nifty hovered above the key 24,000 support level, as investors weighed easing crude oil prices against a deficient monsoon and lingering geopolitical tensions in West Asia.
The BSE Sensex, which closed at 77,100.47 on Thursday, opened at 77,055.21 and was trading at 77,169.83, up 69.36 points or 0.09 per cent, as of 9.17 am IST. The NSE Nifty 50, which ended its previous session at 24,056, opened at 24,061.75 and was trading at 24,092.40, up 36.40 points or 0.15 per cent, at the same time.
Pharma stocks lead gains; banks and IT weigh on market
Dr Reddy’s Laboratories was the top gainer on the Nifty50, rising 3.61 per cent to ₹1,399.30 from its previous close of ₹1,350.50, continuing a broader outperformance in the pharma sector that analysts noted last week. Eternal followed with a gain of 1.94 per cent to ₹260.10, while JSW Steel added 1.33 per cent to ₹1,247.40. Shriram Finance and Trent rounded out the top gainers, rising 1.13 per cent to ₹1,043.50 and 1.07 per cent to ₹3,250.60, respectively.
On the losing side, Kotak Mahindra Bank was the biggest drag, falling 1.64 per cent to ₹402.30 from a previous close of ₹409.00. IndiGo slipped 1.35 per cent to ₹5,376.40, while Adani Enterprises fell 1.02 per cent to ₹3,007.00. Mahindra & Mahindra and Infosys each declined 0.88 per cent, trading at ₹3,154.20 and ₹1,032.00, respectively, reflecting continued pressure on the auto and IT sectors.
Analysts see crude oil relief, but monsoon remains a concern
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, pointed to a key macro positive for India. …”Brent crude remains low at below $73, thanks to the unrestricted passage of ships through the Strait of Hormuz… This is a big macro positive for India and has the potential to impart resilience to the market.”… He also noted that foreign institutional investor (FII) behaviour had shifted. …”Relentless FII selling which has been weighing on markets has abated. During the last nine trading days, FIIs were buyers in the cash market.”…
However, Vijayakumar flagged a significant domestic concern. …”A big concern now is the hugely deficient (43 per cent) monsoon. If the monsoon revives and compensates for the deficit in the coming weeks, the market also will respond positively.”…
Nifty faces resistance near 24,200 as support holds
Market technicals present a mixed but broadly stable picture. Gaurav Udani, Founder of Thincredblu Securities, said the 24,000 level remained central to near-term direction. …”The index continues to trade above the important 24,000 level, which remains a crucial support for the ongoing short-term trend. Holding above this zone will be key to sustaining the positive market structure.”… He added that …”24,200–24,300 remains the immediate resistance range. A decisive move above this zone could trigger fresh buying momentum.”…
Rajesh Palviya, Head of Research at Axis Direct, noted that India VIX fell to 13.05, signalling reduced market anxiety, and that the Nifty had posted its third consecutive weekly advance last week. He pointed out that global cues remained mixed, with US markets ending flat to negative on technology sector selling, while Asian markets opened with a negative bias Monday morning, led by weakness in Japanese equities.
Aakash Shah, Technical Research Analyst at Choice Broking, highlighted the derivatives market’s positioning. …”The Nifty Put-Call Ratio stands at 1.06, remaining above the 1-mark… suggesting that put writing activity continues to outweigh call writing, indicating that traders maintain a bullish stance while becoming slightly cautious near resistance levels.”…
Geopolitical risks, earnings season to drive market action
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that pharma outperformed with gains of over 2 per cent last week, while metals were the biggest laggard, declining 4.4 per cent. He said the market found strong support near its 50-day Simple Moving Average but faced persistent selling at the 24,200 resistance level. …”For positional traders, 24,000/77,000 remains the immediate support level. As long as the market holds above this zone, a retest of 24,200/77,800 is likely.”…
Ponmudi R, CEO of Enrich Money, flagged that fresh US-Iran military exchanges had reintroduced geopolitical uncertainty, though crude oil remained in the ₹69–70 per barrel range, well below recent highs. …”Broader diplomatic efforts and peace negotiations remain underway, offering hope that tensions can be contained.”…
With the Q1 FY results season approaching, analysts expect increased stock-specific action in the sessions ahead.