Indian equity benchmarks rebounded sharply on Monday after opening in the red, driven by buying interest at lower levels. According to NDTV Profit, the NSE Nifty 50 ended 0.03% higher at 23,649.95, while the BSE Sensex closed up 77 points at 75,315. However, volatility remains elevated with the index experiencing significant intraday swings. Nifty had risen as much as 0.2% to 23,595.65 and had fallen as much as 1.4% to 23,317 during the trading session, while Sensex had risen as much as 0.3% to 75,466.60 and had fallen as much as 74,180.26. The recovery was supported by gains in Bharti Airtel Ltd. and Infosys Ltd., which were offset by losses in SBI and Tata Steel Ltd.
Technical analysts are closely monitoring key support and resistance levels for the Nifty 50. As per SBI Securities, immediate support for the index is placed in the 23,500-23,450 zone, with any sustainable move below this zone potentially resulting in Nifty extending weakness towards 23,300, followed by 23,150 in the short term. The index continues to trade below its 20-day EMA, while the DI- remains above the DI+, suggesting sellers maintain an upper hand over bulls. Immediate resistance is placed in the 23,850-23,900 zone, which coincides with the 20-day EMA. Kotak Securities recommends level-based trading given the non-directional intraday market texture. The Economic Times reports that a decisive move above 23,650 could trigger a short-term rally towards 24,000 and higher levels, while immediate support is placed near 23,400.
Market volatility has intensified with the India VIX rising 5% to settle at 19.63 levels, indicating heightened market fear and uncertainty. According to The Economic Times, markets are expected to remain event-driven with persistent volatility due to elevated crude oil prices, a weakening rupee, rising bond yields, and inflationary concerns. Analysts note that sustained elevation in India VIX above 18.50 is likely to keep optimism in check and may continue to induce volatility in the near term. While domestic earnings and economic activity remain relatively resilient, investors are increasingly concerned about the second-order impact of elevated energy prices on inflation, fiscal balances, liquidity conditions and the RBI's future policy trajectory.
While benchmark indices managed to close in positive territory, the broader market segments faced significant pressure. As reported by Live Mint, the Nifty Midcap 100 fell 0.22% and the Nifty Smallcap 100 declined 1.26%, both underperforming the benchmark indices. This divergence highlights the selective nature of the market recovery, with large-cap stocks benefiting from tech and pharma strength while mid and small-cap segments remained under pressure.
The Indian rupee continued its downward trajectory, closing at a record low of 96.35 against the US dollar on Monday, slumping 39 paise from the previous session. According to The Economic Times, crude oil prices remain elevated near $106 per barrel, adding to currency pressure. Foreign Portfolio Investors (FPIs) net bought shares worth ₹2,814 crore on Monday, while Domestic Institutional Investors (DIIs) were net sellers at ₹2,682 crore, as reported by The Economic Times. Foreign Portfolio Investors (FPIs) have sold more than ₹2.16 lakh crore worth of Indian equities so far in 2026, exceeding the ₹1.66 lakh crore sold during the entire calendar year 2025, as reported by NSDL data.
