Stock market recap: Benchmark equity indices, Sensex and Nifty 50, closed lower on Monday due to selling in IT and FMCG shares as renewed tensions in West Asia triggered a rally in crude oil prices.
Stock market recap: Benchmark equity indices, Sensex and Nifty 50, closed lower on Monday due to selling in IT and FMCG shares as renewed tensions in West Asia triggered a rally in crude oil prices.
The 30-share BSE Sensex declined 307.24 points, or 0.40%, to settle at 76,957.27 with 20 of its constituents ending lower and 10 with gains. The 50-share NSE Nifty dropped 95.25 points, or 0.39%, to end at 24,080.40.
The 30-share BSE Sensex declined 307.24 points, or 0.40%, to settle at 76,957.27 with 20 of its constituents ending lower and 10 with gains. The 50-share NSE Nifty dropped 95.25 points, or 0.39%, to end at 24,080.40.
Among the 30 Sensex firms, Adani Ports, ITC, Bharti Airtel, HDFC Bank, Infosys and Kotak Mahindra Bank were the major laggards.
Sun Pharma, ICICI Bank, Axis Bank and State Bank of India were among the gainers.
Brent crude jumped 3.63% to $91.30 a barrel.
Two stock recommendations by MarketSmith India:
Buy: Tata Technologies Ltd (current price: ₹831)
- Why it’s recommended: Global EV & SDV Outsourcing Tailwinds: Strong global automaker investments in Electric Vehicles (EVs) and Software-Defined Vehicles (SDVs) are accelerating multi-million-dollar, full-vehicle development engineering contracts. Aerospace Sector Diversification: Active multi-year empanelment and commercial scaling with global giants like Airbus provide significant non-automotive growth momentum.
- Key metrics: P/E: 117.41, 52-week high: ₹891.00, volume: ₹115.88 crore
- Technical analysis: Trendline Breakout
- Risk factors: High Client Concentration: A massive share of revenues remains concentrated within top anchor accounts like Tata Motors and Jaguar Land Rover (JLR). Intense Engineering Peer Competition: Heavy margin and market share competition from core specialized EV and digital design rivals like KPIT Technologies and Tata Elxsi.
- Buy: ₹823–835
- Target price: ₹940 in two to three months
- Stop loss: ₹795
Buy: Atlanta Electricals Ltd (current price: ₹1,837)
- Why it’s recommended: High-Voltage Grid Pivot: Aggressive manufacturing expansion into high-margin 400kV and 765kV power transformers positions the company to capture major Power Grid Corp. of India Ltd (PGCIL) transmission upgrades. Renewable Energy Infrastructure Boom: Surge in demand for specialized inverter-duty and grid-stability transformers to support India's targeted 500 GW non-fossil capacity expansion by 2030.
- Key metrics: P/E: 59.82, 52-week high: ₹2,152.60, volume: ₹54.22 crore
- Technical analysis: Trendline Breakout
- Risk factors: State Utility Exposure & Receivable Stress: Over 60% of the order book is tied to state electricity boards, bringing high risk of stretched payment cycles and working capital strain. Raw Material Price Volatility: Sharp fluctuations in global costs for essential inputs like copper and CRGO electrical steel heavily threaten product profit margins.
- Buy at: ₹1,819–1,846
- Target price: ₹2,090 in two to three months
- Stop loss: ₹1,740
How Nifty 50 performed
On Monday, Indian equities ended on a weaker note, with Nifty 50 closing at 24,080.40, down 95.25 points or 0.39%, after trading between 23,993.60 and 24,128.70.
Selling pressure was more pronounced in the broader market, with overall market breadth distinctly negative: 1,340 stocks advancing, 2,204 stocks declining, and 97 remaining unchanged, translating into an advance-decline ratio of roughly 0.61:1. On the sectoral front, FMCG, Metals, IT, Media and Consumer Durables were the key laggards, while Private Banks, Pharma, Healthcare, and Oil & Gas provided some support.
Sentiment remained cautious amid elevated crude oil prices, renewed US-Iran geopolitical tensions and concerns around higher US bond yields and interest rates. Sensex also finished lower, broadly mirroring Nifty’s weakness.
During the session, the index briefly breached both its rising trendline and the 100-DMA. However, it recovered to close above them, suggesting that the broader uptrend remains intact for now despite increasing selling pressure. However, the index continues to trade below its shorter-term moving averages, reflecting a loss of momentum following the recent decline.
Although it is still comfortably above oversold territory, the RSI slipped to 43.70 and remains below its signal average of 48.27, indicating weakening momentum.. Meanwhile, the MACD remains in negative territory, with the MACD line below the signal line and a negative histogram, reinforcing the cautious short-term setup.
Nifty 50 has breached its 50-day moving average (DMA), indicating some deterioration in near-term momentum. Although the index continues to hold above its upward-sloping trendline, keeping the broader recovery structure intact for now.
On the downside, a decisive break below 24,100–24,000 would weaken the prevailing technical setup and could extend the corrective move toward 23,900–23,800. Conversely, on the upside, the 21-DMA near 24,400 is likely to act as the immediate hurdle. A sustained close above this level would signal improving short-term momentum and could pave the way for a broader recovery toward 24,700, where the 200-DMA is currently positioned.
How did the Nifty Bank perform?
Nifty Bank opened on a negative note at 57,353.75, below the previous close, and slipped to an intraday low of 57,187.35. Strong buying from lower levels subsequently drove a sharp recovery, with the index touching an intraday high of 58,024.95 and closing at the same level, gaining 528.65 points or 0.92%. The index decisively reclaimed its 21-, 50-, and 200-DMA, reflecting renewed buying strength.
The session formed a bullish closing Marubozu-type candle, as the close coincided with the day’s high. However, volume remained moderate, suggesting follow-through buying is necessary. The broad 57,200–58,100 consolidation continues, but the strong close near the upper boundary improves the probability of an upside breakout.
RSI rose sharply to 56.89 and remained above its average line at 51.14, signalling improving momentum without entering overbought territory. MACD strengthened to 72.86 and moved above its signal line at 59.65, producing a positive histogram of 13.21.
This bullish crossover supports the improving price structure and indicates that upward momentum is gradually gathering strength. Nevertheless, MACD remains close to the neutral zone, so sustained strength above 58,100 is required for stronger confirmation. The simultaneous recovery in price, RSI, and MACD suggests accumulation rather than a temporary short-covering rebound.
Immediate support is placed around 57,665–57,450, corresponding to the 21-, 50-, and 200-DMA cluster. A close below this zone could expose 57,187, followed by stronger support near the 100-DMA at 56,457. On the upside, 58,025–58,150 is the immediate resistance band; a decisive breakout could open the path toward 58,500–58,700. Banking heavyweights provided market support, although HDFC Bank’s leadership-transition developments may create stock-specific volatility.
Meanwhile, higher crude oil prices amid renewed geopolitical concerns could restrict broader risk appetite. The near-term bias remains cautiously positive while the index holds above 57,450, with stronger upside confirmation emerging only above 58,150.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.