Indian equity markets have been experiencing sustained downward pressure, with domestic benchmark indices showing consistent declines over recent weeks. The ongoing market volatility has affected major indices, reflecting broader challenges in the current trading environment.

Market Performance Overview

The domestic benchmark indices have faced continuous pressure for over two weeks, demonstrating the persistent nature of the current market downturn. This extended period of decline has impacted investor sentiment and market dynamics across various sectors.

Index Performance Details

The Nifty 50 has registered a decline of nearly 2% over the past month, reflecting the challenging market conditions that have persisted during this period. Similarly, the Sensex has experienced a decline of over 2% during the same timeframe, indicating that the pressure on equity markets has been broad-based across major indices.

Market Pressure Timeline

The sustained pressure on domestic benchmark indices has been evident for over two weeks, suggesting that the current market conditions represent more than just short-term volatility. This extended period of decline has characterized the recent trading environment, with both major indices showing consistent downward movement.

The current market scenario reflects the ongoing challenges faced by Indian equity markets, with both benchmark indices experiencing similar levels of decline over the measured period. The persistence of this downward pressure across major indices indicates the broad-based nature of the current market conditions.

Indian equity benchmark indices opened sharply lower on Monday, with BSE Sensex and NSE Nifty losing about 0.5% each, extending the recent choppy trend. Weak global cues, persistent foreign fund outflows, and geopolitical uncertainty weighed heavily on market sentiment as investors remained cautious at the start of the week.

Market Performance at Opening

The key market metrics at 09:28 am reflected broad-based weakness across Indian equities:

The volatility spike was particularly notable, with India VIX jumping over 6%, underlining rising nervousness among market participants. This cautious opening came despite the benchmarks ending marginally higher in a volatile session on Friday.

Technical Analysis and Key Levels

Technical analysts have flagged critical support and resistance zones for the Nifty in the near term. The 25,600-25,500 zone has emerged as crucial support, with analysts warning that a sustained break below this band could open the door to deeper corrections. On the upside, any recovery is likely to face stiff resistance near the 25,900-26,000 levels.

Shrikant Chouhan of Kotak Securities noted that "the current market formation is volatile and non-directional, and this is likely to continue in the near future." He advised traders to reduce weak long positions at resistance levels given the uncertain market environment.

Sectoral Performance and Banking Outlook

Early trade showed mixed sectoral performance, with IT stocks coming under particular pressure. Wipro led the decline among technology names, while select banking and consumption stocks witnessed some buying interest. Bank Nifty held relatively better compared to the broader market, supported by strength in heavyweight lenders.

However, analysts cautioned that a slip below 59,500 for Bank Nifty could make the current uptrend vulnerable to further correction.

Foreign Investment Flows and Global Factors

Institutional flows continued to be a key market overhang, with significant selling pressure from foreign investors:

Global cues remained unsupportive, with Asian equities trading lower amid fresh geopolitical jitters. US markets had ended lower on Friday ahead of a long weekend as investors stayed cautious at the start of the earnings season. Oil prices eased, offering limited relief to market sentiment.

Market Outlook and Expert Views

VK Vijayakumar of Geojit Investments warned of heightened uncertainty ahead, suggesting that markets could remain volatile in the near term as geopolitical and geoeconomic developments unfold. He highlighted that the increasing use of tariffs as a policy tool could weigh on global trade sentiment.

Despite the near-term challenges, Vijayakumar suggested that long-term investors may use sharp market swings to selectively accumulate high-quality largecap stocks at reasonable valuations. With no immediate domestic triggers and global uncertainty lingering, market participants are likely to stay selective and range-focused in their approach.