Nifty experienced a sharp sell-off on Monday, continuing its downward trend amid weak global market signals and rising geopolitical tensions. The index opened with a significant gap down, reflecting negative sentiment from international markets, and remained under sustained selling pressure throughout the trading session. Analysts from Religare Broking Ltd noted that the decline was driven by broader uncertainties and continued challenges in the global economic environment. The next key support level for the Nifty is expected to be in the 21,900–22,000 range, which aligns with the 200-week moving average, followed by the 21,700 level, corresponding to the April 2025 low. Given the prevailing volatility and uncertain outlook, the firm advised investors to adopt a cautious approach, recommending options spreads over naked positions in the index. A selective, stock-specific trading strategy was also emphasized to navigate the volatile market conditions. The banking sector mirrored the broader market weakness, with the banking index extending its downward trend for the third consecutive session. The index opened with a steep gap down and remained weak, trading well below key short-term moving averages. Broad-based selling was observed across major banking stocks, with PNB and Union Bank leading the decline. Technically, immediate resistance for the Nifty is positioned near the 22,500 level, while strong support is identified around the 22,000 mark. Analysts highlighted the importance of monitoring these levels as critical turning points for the index. The combination of global headwinds, domestic economic concerns, and geopolitical risks is expected to keep pressure on market participants in the near term.#global_markets #nifty #religare_broking_ltd #pnb #union_bank
