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Stock market today: The Nifty50 fell 0.27% on Monday, 14 July,  in a choppy session, weighed down by losses in IT and financial stocks. The Nifty IT index dropped over 1% after weak earnings from TCS and a cautious sector outlook dented investor sentiment. Financials also saw profit booking ahead of key earnings. 

Adding to the pressure, global risk appetite took a hit after the U.S. announced fresh tariffs on imports from the EU and Mexico. With Q1 earnings around the corner, the broader market remained in consolidation mode, reflecting cautious investor sentiment.

The Nifty 50 saw another volatile session on Monday, opening with a modest gap-down and drifting lower through the day. The index formed a bearish candle on the daily chart, marked by a ‘lower-high, lower-low’ pattern—signalling sustained weakness.

Among sectors, Nifty IT was the biggest drag, while Realty and Pharma outperformed. Broader markets showed some resilience, with midcaps and smallcaps posting gains. However, the advance-decline ratio held at 1:1, pointing to underlying selling pressure and a cautious undertone.

Technically, Nifty continues to trade below its 21-day moving average, reinforcing a short-term bearish bias. On the daily chart, the Relative Strength Index (RSI) is trending lower and hovers near 47, indicating waning bullish momentum. The MACD has also triggered a negative crossover, further confirming weakening near-term trend strength and raising the risk of additional downside unless key support levels hold.

According to O’Neil’s methodology of market direction, Nifty reclaimed its recent high of 25,116, prompting an upgrade in market status to a Confirmed Uptrend as of June 11, 2024.

Despite that, the index extended its corrective phase on Monday, closing below the 21-DMA and slipping under the 25,100 mark—continuing Friday’s decline. Immediate support lies in the 25,000–24,900 zone. On the upside, resistance is seen at 25,200, with a stronger ceiling near 25,500. The overall setup suggests a sideways consolidation range of 24,900–25,200 for Tuesday’s session.

Bank Nifty traded in a narrow, range-bound manner on Monday, ultimately ending the session flat. It opened at 56,780.75 and oscillated between 56,896 and 56,594—reflecting clear indecision among market participants. The day’s price action resulted in a Doji candlestick formation on the daily chart, often viewed as a sign of indecisiveness and lack of directional conviction.

In contrast, the FINNIFTY index underperformed, slipping steadily through the day and closing with a modest 0.19% decline.

Bank Nifty found support near its 21-day moving average and managed to close above it, retaining its position above all key short-term moving averages. However, momentum indicators continue to signal weakness. The daily Relative Strength Index (RSI) is trending downward and currently hovers around 53, indicating diminishing buying strength. This view is supported by a negative crossover on the daily MACD, pointing to weakening bullish momentum in the near term.

According to O’Neil’s market direction methodology, Bank Nifty remains in a Confirmed Uptrend—a status it has maintained for the past few weeks.

Still, the index continues to hover below the key psychological level of 57,000, suggesting ongoing consolidation and lack of strong buying interest. The 21-DMA, currently near 56,700, acts as a critical technical pivot. A sustained break below this level could accelerate downside momentum toward the 56,200–56,000 support zone. On the upside, a firm breakout above 57,000 could trigger a range-bound move within 57,000–57,600 in the near term.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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