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

"Markets witnessed a sharp decline on Monday, losing over 1.5% as the ongoing corrective phase intensified. After opening with a gap-down, the Nifty attempted to recover early losses but faced sustained selling pressure in heavyweight stocks across sectors, driving the index lower. It ultimately closed near the day’s low at 23,085.95.

The sell-off was broad-based, with realty, metal, and energy sectors taking the biggest hits. The broader indices also experienced significant losses, plunging nearly 4% each.

The Nifty has decisively broken below the November 2024 low of 23,263.15, accompanied by a noticeable rise in the volatility index, signaling further downside risks. The next significant support is at the 22,700 level, although oversold conditions in select heavyweight stocks may lead to brief pauses in the downtrend.

Traders are advised to maintain a “sell on rise” approach for the index while prioritizing risk management. Among sectors, IT, FMCG, and select pharma stocks are relatively stable, while others remain under considerable pressure. Participants should adjust their stock-specific positions accordingly."

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