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 precarious position of the Nifty 50 as it approaches critical support levels.
Indian equity markets may start the coming week on a weak note, indicating a likely gap-down opening for the Nifty 50. The GIFT Nifty was trading about 274 points, or 1.11%, lower at 24,300, reflecting the market’s current sentiment.
The Nifty 50 closed the previous week at 24,450, falling 2.9%, while the Sensex settled at 78,919, also down 2.9%. The Bank Nifty dropped 4.5% to close near 57,783, showcasing the overall bearish trend in the market.
Foreign Institutional Investors (FIIs) sold equities worth Rs 21,831 crore during the first week of March, while Domestic Institutional Investors (DIIs) bought equities worth Rs 32,787 crore in the same period. This divergence indicates a cautious approach among investors amid ongoing market volatility.
The Nifty is approaching an important support zone around 24,400, with immediate resistance seen around 24,700-24,900. A sustained break below 24,300 could lead to further declines, raising concerns among traders.
Adding to the market’s challenges, crude oil prices surged nearly 25% during the week, reviving inflation concerns. Vinod Nair commented, “A sustained rise in crude prices could weigh on investor sentiment and adversely affect India’s twin deficits, inflation trajectory and the RBI’s monetary stance.”
Market direction is likely to be influenced by developments in the Middle East conflict, movements in crude oil prices, and foreign institutional investor flows. Ajit Mishra advised, “Given the heightened geopolitical risks and continued FII outflows, investors should adopt a cautious and disciplined approach in the near term.”
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 opening, traders and investors will be closely monitoring these factors to gauge the potential impact on the Nifty 50 and overall market sentiment.
