Today is the first trading session of the week and after a three-day long holiday, Indian markets opened flat. On Monday, Nifty opened 5 points higher at 24,061, while Sensex fell 45 points at 77,055. In Asian markets, Japan’s Nikkei fell half a percent and Korea’s Kospi fell 1.75 percent; In contrast, the Hang Seng rose 1.75 percent.
There is movement in the market as per sector and stock. Indices like Financial, Metal, Pharma and Healthcare are trading with gains, while indices like Auto, IT, PSU Bank and Consumer Durables are witnessing a decline. Stocks like Dr Reddy’s, Trent, Shriram Finance and ONGC were among the top gainers in the Nifty 50, rising up to 3.75 per cent. At the same time, Kotak Mahindra Bank, Adani Enterprises and Mahindra & Mahindra were the biggest losers, falling up to 2.5 percent.
**Market performance last week**
Last week, Nifty closed at 24,056 with a gain of 43 points. The midcap index fell 0.8% and the smallcap index fell 0.2%. Other Asian markets saw bigger declines: the Hang Seng fell 5%, Taiwan’s bourse fell 4% and Korea’s Kospi fell 7%.
Talking about other important factors of the market, crude oil is trading around $72, which is the level before the conflict. In the previous session, foreign investors bought shares worth ₹384 crore in the cash segment, while domestic institutional investors (DIIs) bought shares worth ₹5,747 crore. From a psychological point of view, Nifty is trying to remain above the level of 24,000. Additionally, there are reports that US-Iran tensions that escalated over the weekend are now subsiding; Both countries have indicated that they will not carry out any further attacks. **Where is the support level of Nifty?**
HDFC Securities Technical Research Analyst Nagaraj Shetty said that Nifty seems to have failed to cross the level of 24,200. It is expected that the market will remain in a range in the coming time. If there is a decline, the first support level for Nifty is at 23,800. Unless the index overcomes the resistance level of 24,200, the rally will look weak.
Vinod Nair, head of research at Geojit Investment Limited, said that last week there were mixed signals in the market. US-Iran talks, resumption of supplies from the Strait of Hormuz, crude oil prices falling to pre-conflict levels and news related to India-US trade deal have boosted investor confidence. However, concerns remain regarding monsoon and inflation, which are acting as negative factors.
**What should one keep an eye on?**
Going forward, the market direction will be decided by factors like US inflation data, PMI index, Q1 earnings season, crude oil prices, inflation expectations and progress of monsoon. Additionally, management commentary and order flow will also be closely monitored. The recent decline in some stocks with strong fundamentals provides a great opportunity as the future of these companies remains strong.