The Nifty is expected to remain volatile on Monday, with resistance at 23,350 and 23,450, while key support levels are placed at 23,000 and 22,900.

“The market is consistently facing selling pressure at higher levels and holding a lower top formation, which is largely negative,” said Amol Athawale, vice president of technical research at Kotak Securities.

A sustained move above 23,450 could trigger a rally toward 23,600-23,650, while a breach below 22,900 may intensify selling pressure, pulling the index down to 22,800-22,650.

“Nifty is showing signs of weakness after forming a red candle on the daily chart. However, it has managed to defend the recent swing low of 22,980,” said Hrishikesh Yedve, research analyst at Asit C Mehta Investment Intermediates.

A short-term pullback toward 23,300-23,400 remains possible if the index holds above 22,980. On the upside, the 250-day simple moving average at 23,600 will act as a major hurdle.

With the Union Budget around the corner, “PSU and capex-themed stocks such as railways, defence, and capital goods could see focus,” said Siddhartha Khemka, head of research and wealth management at Motilal Oswal Financial Services.

Investors will also closely track global cues, including developments in US monetary policy and commodity prices, to gauge market direction.

FII/DII Activity

The Nifty January futures were down by 0.64% to 23,114 at a premium of 21.8 points, with the open interest down by 3.13%.

The open interest distribution for the Nifty 50 Jan. 30 expiry series indicated most activity at 24,000 call strikes, with the 22,000 put strikes having maximum open interest.

Market Recap

Indian benchmark indices extended their losses to the third consecutive week as earnings woes continued to hurt investor sentiments. The key gauges trod with caution on Friday to snap their two-day gains, weighed by a fall in heavyweights HDFC Bank Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex closed 329.92 points, or 0.43%, down at 76,190.46, while the NSE Nifty 50 was 113.15 points, or 0.49%, lower at 23,092.20. During the day, the Nifty fell 0.67% to 23,050, and the Sensex declined 0.56% to 76,091.7.

Global Cues 

Stocks in Asia began the week cautiously as US President Donald Trump announced tariffs and sanctions on Colombia for rejecting US deportation flights.

Japan’s Nikkei was 56% points, or 0.14%, lower at 39,882 as of 6:40 a.m., while the stock market in Australia and South Korea will remain shut on Monday. Futures contracts in China and Hong Kong pointed to gains.

Caution looms over global stocks after a rebound last week with Trump eyeing tariffs on Mexico, Canada and China. Colombia received sanctions on Sunday for rejecting US deportation flights over human rights issues. 

US will enact emergency 25% tariffs on goods from Colombia and revoke government officials’ visas. Banking and financial sanctions are also proposed, Trump said in a post on a social media platform.

The dollar was slightly higher after the tariff announcement. The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was up 0.11% at 107.56. The largest cryptocurrency traded above the $100,000 mark.

The week ahead will be action-packed with the Indian budget on Saturday and the interest rate decision by the US Federal Reserve on Wednesday. The US central bank is widely expected to hold interest rates steady, according to Bloomberg.

Meanwhile, stocks on Wall Street lost steam after hitting new records. The S&P 500 and the Dow Jones Industrial Average fell 0.29% and 0.32%, respectively. The tech-heavy Nasdaq Composite slipped 0.50%.

Crude oil prices declined on Monday as traders anticipated volatility due to Trump sanctions. The Brent crude was trading 1.07% lower at $77.66 a barrel as of 7:05 a.m. IST, and the West Texas Intermediate was down 1.13% at $73.82. 

Money Market

The Indian rupee closed stronger against the US dollar on Friday. It strengthened by 26 paise to close at 86.21 against the greenback.

The domestic currency opened strong against the US dollar on Friday, buoyed by a decline in both the dollar index and crude oil prices. The domestic currency appreciated by 18 paise to open at 86.28 against the dollar, after closing at 86.46 on the previous day, as per Bloomberg data.

. Read more on Markets by NDTV Profit.A sustained move above 23,450 can trigger a rally toward 23,600-23,650, say analysts.  Read MoreMarkets, Business, Notifications 

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