Markets started the week on a positive note, with the Nifty closing up 0.6% at 22,556 after four consecutive declining sessions. Analysts say Indian equities are likely to see some relief after an eight-week losing run that cost the Nifty 8.8%, the longest such streak in since 2020. The correction has left valuations at comfortable levels, with Q2 business updates triggering stock-specific buying, banks and financials making a solid start to the reporting season, while monthly auto sales data has added to the improving tone.

STATE OF THE MARKETS

Tech View: The RSI remains in the oversold zone with a bearish crossover. Sentiment continues to remain weak, with support placed at 22,400. A decisive fall below this level might trigger a resumption of the bearish move. On the other hand, a sustained move above 22,600 might provide some short-term respite.

India VIX: India VIX, which is a measure of the fear in the markets, rose 2.2% to settle at 14.78 levels.

Read more: Ahead of Market: 10 things that will decide stock market action on Tuesday

Stocks in F&O ban today

1) SAIL

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Read more: Sebi to partly reverse derivative settlement rules after pushback: Report

Foreign portfolio investors net sold shares worth Rs 4,699 crore on Monday. DIIs, meanwhile, were net buyers at Rs 5,182 crore.

The rupee depreciated 10 paise to close at 96.35 against the US dollar on Monday, as elevated oil prices and persistent foreign fund outflows kept the Indian currency range-bound near the critical 96 level against the US dollar.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.