Nifty 50 Technical Analysis for Monday: Key Support, Resistance & Market Outlook
Nifty 50 Technical Analysis: What to Expect on Monday
The Indian stock market has witnessed significant volatility in recent sessions, with Nifty 50 showing weakness amid global uncertainties and heavy selling pressure. As traders and investors look forward to the next trading session on Monday, analyzing key technical indicators becomes crucial.
📌 Market Overview
Nifty 50 ended the last trading session on a weak note, struggling to hold above critical support levels. The index is down nearly 15% from its all-time high, reflecting cautious market sentiment. Key factors driving this decline include:
- Global Market Trends: Weakness in U.S. and European markets has impacted Indian equities.
- Foreign Institutional Investors (FIIs): Continued selling pressure from FIIs has kept the market under stress.
- Domestic Institutional Investors (DIIs): DIIs have provided some buying support, but not enough to reverse the trend.
- Economic Factors: Inflation concerns, interest rate decisions, and corporate earnings have influenced investor sentiment.
📈 Key Technical Levels: Support & Resistance
| Level Type | Price Range |
|---|---|
| Immediate Support | 21,800 – 22,000 |
| Stronger Support | 21,500 |
| Immediate Resistance | 22,300 – 22,600 |
| Stronger Resistance | 23,000 |
If Nifty 50 fails to hold the 21,800 – 22,000 support zone, we could see further downside towards 21,500. On the upside, a decisive move above 22,600 could trigger a short-term rally.
📉 RSI (Relative Strength Index) Analysis
The RSI for Nifty 50 is currently at 28, which indicates that the index is in the oversold territory. Historically, when RSI drops below 30, we often see a short-term recovery or bounce.
📊 MACD (Moving Average Convergence Divergence) Analysis
The MACD indicator remains in the bearish zone, with the MACD line below the signal line. This confirms that bearish momentum is still strong. However, a positive crossover could signal the start of a reversal.
📌 Bollinger Bands Analysis
Nifty is currently trading near the lower Bollinger Band, which suggests that the index is oversold. If the price moves above the middle band, we may see a short-term recovery.
🔮 What to Expect on Monday?
Based on current technical indicators and market sentiment, here’s what we can anticipate for Monday’s trading session:
- SGX Nifty Trends: If SGX Nifty trades positive, we might see a gap-up opening.
- Global Cues: The performance of U.S. and Asian markets will play a key role in determining Monday’s trend.
- FII Activity: If FIIs continue selling aggressively, expect more downside pressure.
- DII Support: Domestic institutional buying could help stabilize the market.
- Oversold RSI: A short-term bounce is possible if buying emerges.
- Breakout Levels: If Nifty crosses 22,600, we could see a bullish reversal.
📌 Quick Recap: Monday Market Expectations
| Factor | Impact on Market |
|---|---|
| SGX Nifty Trends | May indicate early direction |
| RSI & Technical Indicators | Oversold, possible rebound |
| FII Selling | Key risk if outflows continue |
| DII Buying | May support the market |
| Support Levels | 21,800 & 21,500 (key downside risk) |
| Resistance Levels | 22,300 & 22,600 (breakout levels) |
📢 Final Thoughts
Nifty 50 is currently at a critical juncture, and Monday’s opening will depend heavily on global market trends and institutional investor behavior. Traders should closely watch support at 21,800 and resistance at 22,600 to determine market direction.
Stay tuned for further updates, and happy trading!
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Register and Unlock NowDisclaimer: The stock price targets and analysis presented are based on publicly available information from top brokerage firms and may change over time. Always consult with your financial advisor before making any investment decisions. The opinions expressed in this article are for informational purposes only and do not constitute financial advice.
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