Indian equity benchmarks remained under pressure through Monday's session, with the Nifty 50 closing at 24,287.65, down 78.35 points (0.32%) and the Sensex declining 281.09 points (0.36%) to settle at 77,728.16. According to ET Now, this marks the fifth consecutive day of decline for the benchmarks, with the broader market struggling to find a directional trigger. The Nifty has remained confined within a 438-point trading band since August 4, reflecting a clear lack of directional conviction. Vinod Nair of Geojit Investments noted that markets stayed range-bound during the week as elevated crude and global uncertainty limited investor confidence. The Nifty Smallcap 100 fell 0.66% while the Nifty Midcap 100 gained 0.50% on selective buying, indicating mixed performance across market segments.
Tata Steel, Axis Bank, Reliance Industries and Bharat Electronics were among the winners in Monday's session, while Infosys, HCL Tech, Sun Pharma, Tata Consultancy Services, Tech Mahindra and ITC were among the biggest laggards. Among the Nifty 50 stocks, Hindalco, Tata Steel, HDFC Life, ONGC, Axis Bank and L&T were among the top gainers, with HCL Tech, Infosys, Sun Pharma, TCS and Nestle India being the top losers. Tata Motors Passenger Vehicles (TMPV) led the Nifty losers, sliding 4.92% to ₹332.40 from a previous close of ₹349.60, with volumes surging to over 2.10 crore shares worth ₹70,032.14 lakh. Asian Paints fell 2.21% to ₹2,694.70 against a previous close of ₹2,755.50, while Jio Financial Services dropped 1.82% to ₹250.95. ONGC declined 1.68% to ₹235.86 and NTPC shed 1.64% to ₹338.60.
According to SBI Securities, Sudeep Shah identified 24,200–24,150 as the immediate crucial support zone for Nifty 50, with a slip below 24,150 potentially pulling the index towards 24,100–24,000. On the upside, 24,550–24,600 is the resistance band, and a surge above 24,600 could extend the rally to 24,700. For the Sensex, support is placed at 77,400–77,300 and resistance at 78,600–78,700. The daily ATR currently stands at 192 points, its lowest level since the first week of January 2026, highlighting the sharp decline in volatility. The daily RSI is hovering near 52 and remains in a falling mode, indicating that the upside momentum is gradually losing steam. The daily ADX stands at 11.88 and is also declining, pointing towards a lack of strength in either direction. Options activity shows strong Put writing at the 24,300 strike (nearly 6 times higher than Call writing), 24,200 strike (16 times higher), and 24,100 strike (nearly 3 times higher), indicating a strong base and suggesting limited downside unless Put writers start exiting their positions.
Dharmesh Shah, Technical Head and Vice President at ICICI Securities, projects Nifty to trade within the 23,600-24,600 range in the coming weeks. According to Shah's analysis, the index is transitioning into a volatility contraction pattern after completing earnings season, with historical data showing that breakouts from contracting ranges usually result in bigger moves. The lack of through strength resulted in extended correction towards 200 days EMA (24,385), with the weekly price action forming a bear candle carrying lower high-low, indicating an extended breather. Shah noted that over past eight sessions, Nifty retraced merely 50% of the preceding seven session ~1,150-point upmove, indicating a slower pace of retracement that has effectively cooled off overbought conditions without compromising the larger uptrend. Immediate support is placed at 24,000 being the placement of three months rising trend line that coincided with gap area seen during July 29 (24,040-24,136), while a decisive breakout above upper band of past four months consolidation (24,600) would trigger the next leg of up move.
The Midcap index continued to record fresh highs while the small cap index traded in the vicinity of All Time High, backed by significant improvement in the broader market. According to Shah's analysis, currently 56% of stocks of Nifty 500 universe are trading above 200 days SMA compared to three weeks back reading of 48%, indicating strong breadth support. Sectorally, Consumer Discretionary, Realty, and Defence remained in limelight while metal, financials took a breather. Shah emphasized that structurally, since April 2026, the index has seen forming 'higher lows' while pricing in host of negative news on geopolitical uncertainty and crude oil volatility. As long as Nifty holds above the previous swing low of 23,600, the positive bias remains intact, with any corrective dips viewed as accumulation opportunities in stocks backed by strong earnings.
