MUMBAI — Indian equity benchmarks are poised for a positive start on Monday, with Nifty 50 and Sensex showing signs of stabilization after sharp declines in the previous session. The Gift Nifty indicates a promising opening, trading around 24,875, approximately 22 points above its previous close.
On Sunday, the market experienced a significant drop following the announcement of Budget 2026, primarily due to a hike in the Securities Transaction Tax (STT) on futures and options (F&O) trading by Finance Minister Nirmala Sitharaman. The move unsettled investors and contributed to a steep decline in key indices.
Market Performance and Technical Outlook
- The Sensex plummeted 1,546.84 points, or 1.88%, ending at 80,722.94.
- The Nifty 50 declined 495.20 points, or 1.96%, closing at 24,825.45.
Sensex Analysis:
The Sensex formed a long bearish candle on the daily chart and is trading below its 200-day simple moving average (SMA), indicating a negative short-term outlook. Experts suggest that volatility is likely to persist, with resistance around 81,300. If the index remains below this level, further declines could see it dropping to 79,600–79,000.
Nifty 50 Outlook:
The Nifty 50 also formed a long bearish candle, signaling a breakdown of crucial support at 25,000. Technical analysts warn of potential further weakness, with next support levels eyed at 24,500–24,400. Immediate resistance is seen around 24,900–25,000. Market experts note that unless the index sustains above 25,300, the bias remains cautious to bearish.
Bank Nifty Perspective:
Bank Nifty closed at 58,417.20, down 2%, with a bearish candle indicating increased intraday volatility. The index fell below its 20-day and 50-day EMAs, suggesting a weakening trend. Immediate support zones are identified at 57,700–57,800, with further downside risks if these levels are breached. Resistance is expected around 59,000–59,100.
Market Sentiment and Future Outlook
Analysts highlight that the recent decline reflects a transition into a corrective phase, with traders advised to adopt level-based strategies amid ongoing volatility. A sustained move above resistance zones could stabilize the indices, but a break below key supports might signal deeper corrections in the near term.
Investors are closely watching how the market will respond in the coming sessions, especially considering the impact of fiscal policies and global cues on Indian equities.
