16 hrs ago
Indian Stocks Extend Losses as Oil and Rate Risks Rise
Indian stock markets had another difficult day on Monday.
The Nifty and Sensex both fell, making it the fourth losing session in a row.
Technology companies dropped because strong US jobs data made investors expect higher US interest rates.
Higher rates could make companies and clients spend less money on Indian technology services.
Oil prices also rose because of tensions involving the United States and Iran.
Expensive oil can increase worries about inflation.
Analysts said the Nifty may find support near 23,700 to 23,750, while Bank Nifty may find support near 57,000.
If those levels break, the market could fall further, but holding them could keep trading within a range.
The Nifty 50 fell 0.57% in the session overview to 23,779, extending its losing streak to four sessions, while the Sensex declined 0.5% to 76,132.
Analyst data cited the Nifty at 23,779.15, down 118.55 points or 0.50%, and the Sensex at 76,132.81, down 382.62 points or 0.50%.
Technology stocks led the decline as stronger US jobs data increased expectations of a Federal Reserve rate hike and potentially weaker client spending.
Brent crude rose toward $97 a barrel amid reported tanker attacks involving the United States and Tehran, while most Indian sectors declined and pharmaceuticals gained.
Analysts identified 23,700–23,750 as immediate Nifty support and 57,000 as key Bank Nifty support, with breaks below those levels potentially triggering further losses.
- Who
- Indian stock-market investors, technology companies, analysts, the Federal Reserve, the United States and Iran.
- What
- The Nifty 50, Sensex and Bank Nifty fell as oil prices and expectations of higher US interest rates increased market pressure.
- Where
- Indian markets, with effects linked to US jobs data and tensions involving the United States and Iran.
- When
- Monday, September 7; analysts provided an outlook for Tuesday.
- Why
- Stronger-than-expected US job growth raised expectations of a Federal Reserve rate hike, while Middle East tensions pushed crude oil prices higher.
Bearish outlook
Supportive or range-bound outlook
Nifty direction
Bearish outlook
The close below 23,800 could lead to a retest of 23,600, and a break below 23,700–23,750 could increase selling toward 23,500.
Supportive or range-bound outlook
If the index holds its immediate support, a rebound toward 23,900 and eventually 24,000–24,100 remains possible.
Bank Nifty support
Bearish outlook
A sustained move below 57,000 could trigger further downside toward 56,000, with the index already below its 20-day and 200-day moving averages.
Supportive or range-bound outlook
Holding above 57,000 could keep Bank Nifty range-bound between 57,000 and 58,000.
Trading strategy
Bearish outlook
Religare Broking recommended a continued “sell on rise” approach until the market stabilizes.
Supportive or range-bound outlook
Analysts also advised remaining selective on individual stocks and using strict risk management rather than assuming broad-based gains.
Key facts
- Nifty 50 close
- 23,779.15, down 118.55 points or 0.50% according to analyst data; the session overview reported a 0.57% decline.
- Sensex close
- 76,132.81, down 382.62 points or 0.50%.
- Bank Nifty close
- 57,088.30, down 281.35 points or 0.49%.
- Nifty support
- Immediate support at 23,700–23,750; a break could expose 23,500 or the July swing low near 23,600.
- Nifty resistance
- 23,900 initially, followed by the 24,000–24,100 zone.
- Bank Nifty levels
- Support at 56,900–57,000 and resistance at 57,900–58,000.
- Brent crude
- Rose toward $97 a barrel and reached its highest level in six weeks.
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth
“On the technical front, the Nifty ended below the 23,800 mark after failing to sustain above the 23,900 zone, reflecting continued weakness in near-term momentum. Immediate support is placed at 23,700–23,750; a decisive break below this zone could accelerate selling pressure and expose the index to the 23,500 level. On the upside, 23,900 remains the first resistance, followed by the crucial 24,000–24,100 zone, which the index needs to reclaim to improve the short-term technical outlook.”
livemint.com
“Technically, the Nifty has slipped back below the immediate support of 23,800, and the close indicates the possibility of a retest of the July swing low at the 23,600 level next, while the 23,900–24,050 region is expected to act as a stiff hurdle on any rebound. Given the current setup, we recommend continuing with a “sell on rise” approach in the Nifty while staying selective on the stock-specific front and focusing on strict risk management until the market stabilizes.”
livemint.com
Sources
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