Nifty Above Crucial Support As IT Drags, Defense Stocks Shine: SEBI RA Highlights Key Levels Amid Market Volatility

Indian markets witnessed a minor recovery but remained in the red on Monday, with the Nifty above the crucial support level of 24,800 in afternoon trade. 

SEBI-registered analyst Deepak Pal observed that the index is taking support near its 14-day Exponential Moving Avergage (EMA). The MACD remains in the positive zone and Relative Strength Index (RSI) is around 52, suggesting neutral momentum.  

Pal highlighted that the 14, 55, and 200-day EMAs are acting as strong support levels for Nifty. However, weakness in the IT sector has added pressure on the index, as heavy selling was witnessed in IT heavyweights like Infosys, TCS, HCL Tech, following a sharp fall in Accenture shares and concerns over reduced U.S. government spending.  

Additionally, a global risk-off mood, weakness across Asian markets, and elevated volatility (India VIX up nearly 5%) have contributed to the selling pressure in Indian equities.  

For the short term, Pal sees 24,800 as a crucial downside support zone, while 25,000 acts as an immediate resistance. If Nifty manages to break and sustain above 25,000, and global markets remain positive, he expects further upside towards the 25,250–25,300 levels.

On the other hand, defense stocks witnessed strong buying on Monday, despite broader market weakness. This came after conflict escalated in the Middle East over the weekend as the U.S. attacked three Iranian nuclear sites.

Bharat Electronics (BEL) shares hit a fresh all-time high — a sign of strong investor confidence in the defense sector. Other notable movers include Paras Defence, Zen Technologies, HAL and BDL. 

Analyst Akhilesh Jat noted that heightened geopolitical tensions and expectations of increased defence spending continue to drive interest in defense-related stocks.

For updates and corrections, email newsroom[at]stocktwits[dot]com.