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Below the Quote on Daily Market Analysis by Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd

Markets began the week on a negative note, shedding approximately 1.3%, extending the ongoing downward trend. Persistent foreign fund outflows, coupled with caution surrounding the upcoming U.S. elections, weighed on sentiment. Following an initial dip, Nifty sustained a bearish tone through the first half; however, a recovery in select heavyweights helped pare some losses, ultimately closing below the 24,000 level. All major sectors moved in line with the benchmark, with realty, energy, and metal among the top losers. Broader indices also felt pressure, falling between 1.2% and 2%.

The breakdown of Nifty’s recent consolidation range of 24,000–24,500, along with a noticeable increase in the volatility index (India VIX), reflects growing pessimism among participants. Should Nifty sustain levels below 24,000, it may move toward the next significant support, the 200-day Exponential Moving Average (DEMA) around 23,500. Traders are advised to adjust positions accordingly, prioritizing risk management amid the expected rise in volatility.

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