Monday saw a decline in India’s key indexes,the Sensex and Nifty,due to negative international signals. The extended market decline draws attention to economic difficulties,but crucial support levels point to potential future gains for investors who concentrate on stocks with strong fundamentals.
As other Asian markets fell as a result of concern over U.S. tariffs and deflationary pressures in China, Indian benchmark indices, the Sensex and Nifty, gave in to further selling pressure on Monday after their biggest advance in three months last week. Additionally,the atmosphere was dimmed by weak US futures that suggested Wall Street would have a bad start.
After rising half a percent to its day’s high of 22,676.75 in today’s transactions,the Nifty 50 fell about 250 points from its peak to turn red in the second part of the day.
Furthermore,from October 2024 to February 2025,the indexes were in the red for five consecutive months,a trend that hasn’t been seen in decades; the last time this happened was in 1996.
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Osho Krishnan,Senior Analyst-Technical & Derivative Research,Angel One Ltd.,claims that the extended market decline highlights the present state of the economy and investor mood.
After consolidating over the previous five months, the standard has suddenly dropped back to levels observed a year ago. Osho Krishnan points out that the intermediate trend has a troubling shape from a technical perspective. Sentiment has been further depressed by the global market uncertainty, which has been made worse by ongoing selling pressure from foreign institutional investors (FIIs).Market confidence is still brittle as a result of big investors selling down their holdings, therefore dealers and investors alike must adopt careful posture.
Levels of Critical Support and Prospects :
Historical tendencies show that the market could be reaching a much-needed pause,potentially clearing the way for a reversal,as has been observed in prior cycles.
According to Osho Krishnan, statistical analysis shows that the market is undergoing severe overselling, which is causing valuations that had previously risen to unsupportable levels to sharply reverse. According to the analyst,this situation offers investors a chance to find stocks that have now adjusted to more affordable pricing. Investors might strategically position themselves for future returns by concentrating on companies that have experienced price corrections and are essentially sound.
According to technical research,investors should pay special attention to the Nifty index as it is currently circling a critical support zone. The index is currently trading close to the 89-week exponential moving average (WEMA),a historically key support level, according to Osho Krishnan. Notably,in significant cases such as September 2020, June 2022,and March 2023,this indication has precipitated robust price reversals. Additionally, this zone was the starting point of the pre-election surge last year,highlighting its significance for market players. Between 22,000 and 21,800,a level where buyers have previously joined the market with conviction, is the crucial support range.
The Nifty may indicate the start of a fresh bullish trend if it maintains above this important support. A persistent violation of this level,meanwhile,can signal additional downside danger. Because any price activity in this area could dictate the market’s near-term direction,Osho Krishnan urges traders and analysts to keep a close eye on how the market reacts to these levels.