Closing Bell: Nifty Fails 24,250 Again as VIX Rises Ahead of August Expiry | Bank Nifty Slips 236 points

24,250 Resistance Holds - Volatility Signals Caution

The Nifty 50 ended Monday at 24,219, attempting to stay near the flat line but once again failing to break above the crucial 24,250 resistance level. Repeated rejection from this zone is keeping the near-term market bias under pressure and suggests that sellers remain active at higher levels.

The bigger concern is the sharp rise in India VIX, which gained around 3% for the second consecutive session. Over the following two sessions, the fear index has climbed roughly 7%, highlighting increasing market uncertainty ahead of the August monthly expiry tomorrow.

Bank Nifty Slips as PSU Banks Join the Sell-Off

Bank Nifty came under pressure, falling 236 points to close at 57,526.

The selling broadened across the banking space, with the PSU banking sector declining around 1%, followed by weakness in private banks. SBI (SBIN) was among the key stocks contributing to the downside move and added pressure to the broader banking index.

India VIX Becomes the Key Signal

With Nifty repeatedly struggling around 24,250, traders should closely monitor India VIX from here.

A continued rise in volatility while Nifty remains below resistance could increase the probability of another downside move. If VIX starts rising more aggressively, the pressure on equities could intensify further, particularly around the monthly expiry.

Bottom line: Nifty's inability to reclaim 24,250, combined with rising India VIX and weakness in banking stocks, keeps the market vulnerable to further downside. The expiry session could bring increased volatility, making 24,250 and India VIX the two key signals to watch.