Monday's trading session, July 13, 2026, turned out to be an emotional roller coaster for investors. The day began with a sharp sell-of. The Sensex tumbled over 700 points intraday to reach a low of 76,857.43, while the Nifty 50 also slipped to around 24,039. However, as the day progressed, the market reversed course and staged a strong recovery led by IT stocks, bringing both indices back close to their previous closing levels by the afternoon.
The decline was linked to escalating tensions in West Asia- reports of Iran closing the Strait of Hormuz following fresh U.S. strikes over the weekend pushed crude oil prices higher and fueled a risk-off sentiment across global markets. On the other hand, TCS's strong Q1 earnings supported the IT pack and played a key role in offsetting broader market losses.
Notably, the market had put in a stellar performance on Friday; - the Sensex climbed 827.27 points to close at 77,539.39, while the Nifty gained 244.1 points to settle at 24206.90. Monday's dip can be seen as a natural profit-booking move following that strong rally, compounded by global uncertainty.
Key signals for tomorrow:
According to technical analysts, the 24,300 level remains an immediate resistance for the Nifty, while 23,800 continues to act as a strong support on the downside. Volatility is likely to persist until there's clarity on the Strait of Hormuz situation. Additionally, this week's Q1 earnings from HDFC Bank and ICICI Bank, along with India's CPI inflation data, will play a significant role in determining the market's direction.
Aurelius business View: The market currently appears caught between two opposing forces-rising geopolitical tension and surging crude oil prices on one side and strong corporate earnings along with domestic buying support on the other. In such an environment, investors should proceed with discipline-waiting for a decisive breakout above 24,300 before taking large positions would be a prudent approach.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers are advised to consult certified financial experts before making any investment decisions.
