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

Markets plunged sharply on Monday, losing over 2.5% due to weak global cues. After a gap-down start, Nifty inched gradually lower throughout the day, briefly breaching the 50-day EMA support zone around 23,950 before closing at 24,055.60 level. All key sectors declined in line with the benchmark, with realty, metal, and energy being the top losers. The broader indices also suffered, losing between 3.6% and 4.6%.

Going forward, we may see continued volatile swings with a negative bias due to multiple global headwinds, including the unwinding of Yen carry trades, recession fears in the US, and escalating tensions in the Middle East. On the index front, we are eyeing the 23,250-23,400 zone as key support for Nifty, while the 24,500-24,700 zone will act as resistance in the event of a rebound. Traders should align their positions accordingly and prefer a hedged approach. Investors, on the other hand, should view this correction as an opportunity to accumulate quality stocks on dips.

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