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On Monday, the Nifty 50 closed flat, gaining just 0.30 points or 0.00% to settle at 25,461.30. The BSE Sensex added just 9.61 points or 0.01% to end at 83,442.50. Bank Nifty staged a modest rebound from intraday weakness, gaining 82.70 points or 0.15% to close at 56,949.20, driven by selective strength in financial counters.

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On Monday, the Nifty 50 closed flat, gaining just 0.30 points or 0.00% to settle at 25,461.30. Similarly, the BSE Sensex added just 9.61 points or 0.01% to end at 83,442.50. Bank Nifty staged a modest rebound from intraday weakness, gaining 82.70 points or 0.15% to close at 56,949.20, driven by selective strength in financial counters.

While some pressure was visible in high-beta and interest-sensitive sectors — with the Metal index down 0.61%, PSE falling 0.28%, and PSU Bank slipping 0.16% — defensives firmly held ground. The FMCG sector led the charge with a robust gain of 1.68%, followed by the Consumption index up 0.43%, and Oil & Gas rising 0.41%, signaling a clear preference for stability in uncertain terrain.

Among individual performers, Hindustan Unilever shone brightly, rallying 3.04% on strong institutional interest. Nestle India gained 1.22%, and Tata Consumer advanced 1.12%, reflecting sustained demand in quality consumption names. On the flip side, recent outperformers faced some pullback — Bharat Electronics Limited declined 2.44%, Tech Mahindra dropped 1.89%, and ONGC fell by 1.52%.

Nifty Technical Analysis Daily & Hourly

The Nifty ended Monday’s session largely flat, forming a Doji candlestick on the daily chart, which reflects indecision among traders following the recent upward move. The index closed just above the 25,460 mark, maintaining its broader bullish structure but showing signs of short-term fatigue.

On the technical front, Nifty continues to trade well above its key moving averages, with the 20-day simple moving average positioned at 25,182 and the 40-day exponential moving average at 24,940. This alignment confirms the medium-term uptrend remains intact. Momentum on the daily chart also supports this view, with the Relative Strength Index (RSI) holding firm at 61 and the MACD continuing to trend higher with a reading of 210 versus a signal line of 202. These indicators suggest that while the underlying strength persists, the pace of the rally is slowing.

The intraday picture, however, reveals some caution. On the hourly chart, Nifty is hovering just above the 20-hour moving average at 25,443 and the 40-hour EMA at 25,440. Momentum indicators have turned soft at this timeframe, with the hourly MACD slipping into negative territory at –4 against a signal line of –8, while the RSI hovers near the neutral zone. These signals point toward weakening intraday strength and the potential for range-bound action or minor pullbacks in the near term.

In the derivatives space, the overall option data suggests a mixed tone with a slight bullish bias in the short term. The total Call open interest stands at 13.86 crore, compared to 11.08 crore in Puts, resulting in a net difference of –2.79 crore, which indicates a bearish positioning trend. However, the intraday changes paint a different picture, with Put open interest rising by 1.73 crore and Calls by 1.52 crore. The net addition of 20.88 lakh contracts in favor of Puts reflects fresh Put writing and suggests support is building at lower levels. The Put/Call Ratio stands at 0.80, leaning toward a bearish tilt but still within a manageable range.

From a strike-wise perspective, the highest Call OI remains at 26,000, reinforcing it as a key resistance zone, while the most active addition on the Call side was seen at 25,600. On the Put side, the strongest base continues at the 25,000 strike, followed by notable additions at 25,300, indicating a support band just below current levels.

Volatility edged slightly higher, with India VIX rising by 2% to 12.56. Despite this uptick, the overall volatility environment remains subdued, suggesting traders are still comfortable and not aggressively seeking protection against downside risks. Market breadth was neutral to mildly positive, mirroring the consolidation seen in price action.

In summary, the Nifty’s medium-term trend remains upward, backed by strong moving average support and a constructive daily momentum setup. However, the formation of a Doji and softening intraday indicators highlight growing caution and the potential for consolidation between 25,200 and 26,000. Unless the index breaks above the 26,000 mark decisively, the market may continue to trade in a sideways range. Traders are advised to adopt a tactically cautious approach—considering long positions on dips toward 25,200–25,300 with stops below 25,150, while watching for a breakout above 26,000 to re-enter directional trades.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

 Investments in securities are subject to market risks. Read all the related documents carefully before investing.

 Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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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