The NSE Nifty 50, which settled at its lowest in around seven months on Monday, faces resistance at about 23,000 level, according to stock market analysts.

Aditya Gaggar, director of Progressive Share Brokers Pvt., said the index tested its long-term trendline support at 22,800, and a further breach below this level could potentially push the index towards the 22,300-22,500 zone.

“Conversely, a decisive move above 23,400 is essential to confirm a trend reversal. Immediate resistance and support are now positioned at 23,000 and 22,660, respectively,” he said.

Technically, the current market texture is weak and volatile, and therefore, level-based trading would be the ideal strategy for day traders, said Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

The 23,000 level will be key to watch, he said, adding that as long as the index remains below this threshold, the weak sentiment is likely to continue.

“On the downside, the market could slip to 22,750-22,650. However, if it rises above 23,000, the sentiment may change. Above this level, a pullback formation is likely to continue until it reaches 23,100-23,150,” Chouhan said.

Amid the anxiousness around US President Donald Trump’s trade policy, Indian equities are expected to remain under pressure in the near term, according to Siddhartha Khemka, head of research for wealth management at Motilal Oswal Financial Services Ltd.

“Investors will closely monitor the upcoming Q3 results, Federal Reserve’s stance and India’s budget announcements during this six-day trading week for further cues,” he said.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the 17th straight session on Monday and domestic institutional investors were net buyers for the 28th consecutive session.

The FPIs sold stocks worth Rs 5,015.5 crore, while domestic institutional investors mopped up equities worth Rs 6,642.2 crore, according to provisional data from the National Stock Exchange.

F&O Action

The Nifty January futures were down by 1.22% to 22,831.65 at a premium of 2.5 points, with the open interest down by 10.64%.

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

The Indian benchmark indices extended losses to a second session in a row on Monday. The NSE Nifty 50 ended 263.05 points, or 1.14%, down at 22,829.15, and the 30-stock BSE Sensex ended 824.29 points, or 1.08%, lower at 75,366.17. The two frontline indices posted their lowest level since June 5, 2024.

Market-cap of the Nifty 50 companies fell by Rs 2.4 lakh crore to Rs 182.07 lakh crore.

Stocks To Watch

  • Infosys: The company announced collaboration with Street Child. It established seven digital learning centers to address the educational challenges faced by children in crisis-affected areas of Ukraine.

  • Arvind SmartSpaces: The company will develop a mega industrial park in Ahmedabad spread over 440 acres. Top-line potential for the mega industrial park is of Rs 1,350 crore.

  • 360 One Wam: The company approved the acquisition of Batlivala & Karani Securities India for Rs 1,774 crore and Batlivala & Karani Finserv for Rs 110 crore on fully diluted basis.

  • Bank of Baroda: The bank entered into a business transfer agreement with Bank Dhofar to transfer business undertaken by its Oman branch.

Global Cues 

Stocks in the Asia-Pacific region trod cautiously after Wall Street’s technology stocks took a hit on concern that a cheap artificial intelligence model from Chinese startup DeepSeek could disrupt the industry.

Japan’s Nikkei was 320 points, or 0.76%, lower at 39,934 as of 6:55 a.m., while the stock market in China, Indonesia, South Korea, Taiwan and Vietnam will remain shut on Tuesday. Australia’s benchmark was up 0.09% at 8,418.

Futures contracts Hong Kong pointed to gains, but will close early along with the Singapore stock market.

That tech-heavy Nasdaq 100 sank 3% as Nvidia Corp. suffered the biggest market-cap loss for a single stock in market history. The S&P 500 and the tech-heavy Nasdaq Composite fell 1.46% and 3.07%, respectively. The Dow Jones Industrial Average rose 0.65%.

In a move reminiscent of a tech underdog stealing the show, DeepSeek—a Chinese AI startup founded by quant fund chief Liang Wenfeng—has flipped the global AI narrative.

Its mobile app surged to the top of the iPhone download charts in the US after its release in early January. Nvidia Corp said the new model by DeepSeek is an “excellent AI advancement” that complies with US technology export controls. Earnings announcements from Microsoft and Apple will be in focus this week. 

Meanwhile, the dollar rose on Tuesday after Donald Trump said he’ll soon put tariffs on foreign-produced semiconductors, pharmaceuticals and some metals. “We’ll soon place tariffs on foreign computer chips and bring taxes down to 15% if products are made in America.”

After Trump’s tariff measures, crude oil prices steadied after falling by nearly 2% on Monday. The Brent crude was trading 0.17% higher at $77.21 a barrel as of 7:10 a.m. IST, and the West Texas Intermediate was up 0.18% at $73.30. 

Money Market

The Indian rupee closed weaker against the US dollar on Monday, as it weakened by 13 paise to settle at 86.34 against the greenback.

The domestic currency had opened on a weaker note, depreciating by 14 paise to 86.35 against the dollar, according to Bloomberg data.

. Read more on Markets by NDTV Profit.Investors will closely monitor quarterly results, Federal Reserve’s stance and Budget 2025 during this six-day trading week.  Read MoreMarkets, Notifications 

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