Indian equity markets are expected to open lower on Monday, reflecting ongoing volatility and investor caution.
Nifty Prediction for Monday
“A sustained break below this support could extend the decline toward 24,300-24,200, which has previously acted as a demand zone,” stated Ponmudi R, highlighting the critical levels for the Nifty 50 as it heads into the new trading week.
Indian equity markets may start the coming week on a weak note, indicating another sharp gap-down opening on March 9. The GIFT Nifty was trading about 274 points, or 1.11%, lower at 24,300, suggesting a challenging start for the Nifty 50.
The Nifty 50 closed the previous week at 24,450, marking a decline of 2.9%. Similarly, the Sensex settled at 78,919, also down 2.9%. The Bank Nifty faced a significant drop of 4.5%, closing near 57,783.
Market analysts attribute the recent weakness to rising global risks and persistent foreign investor selling. Ravi Singh noted, “The recent market weakness reflects rising global risks and persistent foreign investor selling,” underscoring the impact of external factors on local markets.
During the first week of March, foreign institutional investors (FIIs) sold equities worth Rs 21,831 crore, while domestic institutional investors (DIIs) bought equities worth Rs 32,787 crore. This contrasting activity indicates a shift in market dynamics.
As the Nifty approaches an important support zone around 24,400, analysts warn that a sustained break below this level could lead to further declines. Immediate resistance for the index is seen around 24,700-24,900, which will be crucial for any potential recovery.
Additionally, crude oil prices surged nearly 25% during the week, reviving inflation concerns. Vinod Nair commented, “A sustained rise in oil prices could weigh on investor sentiment and adversely affect India’s twin deficits, inflation trajectory and the RBI’s monetary stance,” highlighting the broader economic implications.
Given the heightened geopolitical risks and continued FII outflows, Ajit Mishra advised, “Investors should adopt a cautious and disciplined approach in the near term,” reflecting the prevailing uncertainty in the market.
The weak indication comes after a volatile week for Indian equities, which saw heavy selling pressure amid escalating tensions in the Iran-Israel-US conflict. Details remain unconfirmed as the market prepares for Monday’s trading session.
