Indian Markets Start Week on a Downward Trend

Indian equity markets opened the week with a bearish sentiment on Monday. The NSE Nifty 50 index fell by 171 points, or 0.74 percent, settling at 22,921.20, while the BSE Sensex dropped by 490.03 points, or 0.64 percent, to reach 75,700.43.

In the pre-opening session, the Sensex had witnessed a brief uptick, trading at 76,461.65, reflecting an increase of 271.19 points, or 0.36 percent. Conversely, the Nifty 50 faced a decline of 183.25 points, or 0.79 percent, dropping to 22,908.95.

The GIFT Nifty also suggested a weak beginning for the indices, indicating a 59-point drop, or 0.25 percent, resulting in a reading of 23,072.50 during the early trading hours.

Market Sentiment and Technical Analysis

The continuing three-week losing streak of the Nifty underscores the troubling trend in the markets. According to Akshay Chinchalkar, the Head of Research at Axis Securities, it is crucial for the Nifty to surpass the 23,475 mark to indicate a pause in the downward trend. If the index fails to break this level, it remains susceptible to support levels around 22,976, with long-term targets potentially dropping between 22,500 and 22,800.

Sector and Stock Performance

Within the Sensex, Tech Mahindra stood out with a minor gain of 0.14 percent, while Tata Motors and NTPC held steady with little change. However, several major stocks faced setbacks, including Infosys, which saw a decline of 1.34 percent, as well as Kotak Mahindra Bank and ICICI Bank, which dropped by 1.32 percent and 1.28 percent, respectively. Zomato also made headlines as it fell by 1.11 percent, while HCL Tech dipped by 0.70 percent and TCS declined by 1.10 percent.

The markets are currently experiencing pressure due to global cues and disappointing corporate earnings reports, leading to caution among investors.

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