The Nifty 50 index is poised to kick off the trading week on a cautious note, with market experts predicting a range-bound trade. If the Nifty 50 sustains above 25,670 level and decisively clears the 25,800 hurdle, 26,000 is the level to watch in the upcoming sessions.
According to experts, if the index manages to sustain below 25,600, it may face selling pressure and dip towards 25,500-25,450. However, a break above 25,900 could lead to a rally towards 26,200.
On the sectoral front, FMCG stocks are expected to remain under pressure due to concerns over inflation and rising input costs. In contrast, pharmaceuticals and healthcare sectors may witness some buying interest due to the ongoing pandemic situation.
The currency market is also expected to be volatile today, with the rupee facing pressure against a strengthening US dollar. A weak rupee can further exacerbate inflationary pressures in India.
In terms of technical analysis, the Nifty 50 index has formed a support zone at 25,500-25,450 and an resistance zone at 26,000. Breaking through these levels could lead to significant price movement for the index.
Overall, investors need to keep a close eye on market developments and be prepared to adjust their strategies as the situation unfolds.
