Indian equity markets are struggling to sustain upward momentum, with technical indicators suggesting a lack of conviction among investors.
Despite recent positive catalysts, every attempt by the market to recover is being met with selling pressure, indicating that the underlying trend remains fragile.
This technical weakness stands in contrast to the fundamental backdrop, which has seen modest improvements.
Indian equities closed with small gains on Monday, supported by a decline in crude oil prices and emerging reports of progress in peace talks between the United States and Iran.
The easing of geopolitical tensions had previously provided a lift to sentiment, but that support appears to be fading in the face of persistent selling.
Market expert Raja Venkatraman highlighted this disconnect in his latest outlook, noting that the market is trying to revive but lacks the necessary support from news flow or investor sentiment to break out.