Indian benchmark indices witnessed a sharp sell-off on Monday amid weakness in global markets, escalating geopolitical tensions and a surge in crude oil prices, raising concerns over inflationary pressures and their potential impact on economic growth.
At close, the Nifty 50 declined 243.70 points or 1.04 per cent to settle at 23,123, while the Sensex fell 719.08 points or 0.97 per cent to close at 73,524.26.
On the sectoral front, broad-based selling was witnessed across all major sectors. Significant weakness was also visible in IT, Auto and Energy stocks as investors reduced risk exposure amid uncertain global conditions, as Bajaj Broking Research.
The broader market witnessed even stronger selling pressure than the benchmark indices. The Nifty Midcap 100 index declined 1.46 per cent amid profit booking across several sectors, while the Nifty Small cap 100 index fell nearly 2 per cent, reflecting widespread weakness in the broader market.
In terms of Nifty outlook, the index in the daily chart formed an inverted hammer like candle with a small real body and a long upper shadow.
After opening with a gap down, the index staged a pullback but failed to sustain higher levels, surrendering most of its intraday gains to close near its opening level.
Nifty, after the recent corrective decline, has approached the immediate support area of 23,000-23,200 being the confluence of the 8 April bullish gap area and the 61.8 per cent retracement of the previous pullback (22,182-24,601).
Index holding above the support area will lead to consolidation in the range of 23,000-23,550 in the coming sessions. A breach below 23,000 will signal extension of the current decline towards 22,800 and 22,600 levels in the coming sessions. Index has immediate resistance at Monday’s high of 23,267; a breach above the same will open upside towards the key resistance area of 23,500-23,550 levels.
