Key Factors to Watch: 10 Influential Drivers Shaping Monday’s Stock Market Movement

Domestic equity benchmarks faced significant downward pressure on Friday, influenced by escalating geopolitical tensions between the US and Iran, a weakening rupee, and heavy profit booking in the financial sector. The 50-share Nifty index fell by 150.50 points or 0.62%, ending at 24,176.15, while the BSE Sensex declined by 516.33 points or 0.66%, closing at 77,328.19. Market volatility, as measured by the India VIX, decreased by 1.32% from the previous close, settling at 16.84. The overall sentiment has been characterized by a bearish tone, with analysts noting a notable decline in investor confidence.

According to Rupak De, Senior Technical Analyst at LKP Securities, the market sentiment appears increasingly negative, as the Nifty index has dipped below the critical 50 EMA level on the intraday timeframe. Additionally, the daily chart reveals a bearish crossover in the Relative Strength Index (RSI), indicating weakening momentum. If the Nifty remains below 24,200 on Monday, further corrections towards the 24,050 to 24,000 zones are anticipated. However, a recovery above this level could trigger a rebound towards the 24,350 to 24,400 marks.

Technically, Nilesh Jain, Vice President at Centrum Finverse, highlights that despite the recent pressure, the Nifty has maintained its position above the important 21-DMA support near 24,140. Signs of improvement from momentum indicators suggest potential for recovery, with a gradual uptick expected towards 24,300 to 24,500 in the near term. However, the 50-DMA support around the 24,000 level remains pivotal. Additionally, market breadth indicators reflect bearish sentiment, evidenced by the negative performance of large-cap stocks like SBI, HDFC Bank, and ICICI Bank. On the trading floor, notable activity was observed in stocks like Vodafone Idea and YES Bank, indicating robust trading volumes.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)