On Friday, the Nifty 50 broke its five-month losing streak, while the Sensex halted its three-month decline, despite both benchmark indices finishing lower. Analysts suggest that traders should stay vigilant as market conditions evolve, with specific resistance and support levels in focus.

Market Overview: Nifty and Sensex Performances

The NSE Nifty 50 closed 72.60 points lower, settling at 23,519.35, reflecting a decline of 0.31%. Meanwhile, the BSE Sensex finished down by 191.51 points at 77,414.92, marking a 0.25% drop. Despite these losses, the fact that the Nifty ended its losing streak is noteworthy for investors.

Resistance and Support Levels for Nifty

Hrishikesh Yedve, an assistant vice president at Asit C. Mehta Investment Intermediates Ltd, indicated that the Nifty is likely to face resistance between 23,800 and 23,810. A decisive breakout over 23,810 could propel the index toward 24,000 to 24,080, closely aligned with the 200-Day Simple Moving Average.

• Support Levels: If the Nifty dips below 23,400, it could slide further to the 23,200 to 23,000 range.
• Traders’ Strategy: Yedve advises traders to keep an eye on these critical levels for potential trading opportunities.

Bank Nifty Outlook

In terms of the Bank Nifty, Yedve identified resistance levels at 51,850 and 52,000. A strong breakout above 52,000 could signal further upward momentum.

• Trading Strategy: Maintaining a ‘buy on dips’ approach is recommended for the Bank Nifty as long as it stays above the 200-DSMA support of 51,000.

Future Projections for Nifty

Rupak De, a senior technical analyst at LKP Securities, believes that if the Nifty holds above 24,200, it may see additional gains. Conversely, if it stays above 23,400, there’s potential for climbing toward 23,600 or higher.

Futures and Open Interest Insights

The April futures for Nifty saw a decline of 0.57%, closing at 23,637 with a premium of 118 points. Additionally, open interest for Nifty April futures rose by 1.1%.

• Options Market: For Nifty options expiring on April 3, the maximum Call open interest is at 25,400, while the maximum Put open interest is at 24,400. Notably, no securities are currently in the ban period.

Foreign and Domestic Institutional Investments

On Friday, foreign institutional investors (FIIs) became net sellers for the first time in six sessions, offloading equities worth ₹4,352.8 crore. In contrast, domestic institutional investors (DIIs) remained net buyers for the second consecutive day, purchasing equities worth ₹7,646.5 crore, according to provisional data from the National Stock Exchange.

Noteworthy Corporate Developments

A few major companies made headlines with significant announcements:

• AU Small Finance Bank successfully raised ₹770 crore through Tier-II bonds, making it one of the largest issuances by a small finance bank, with HDFC Bank acting as the lead manager.
• HAL secured contracts with the Defence Ministry worth ₹62,700 crore for supplying 156 Light Combat Helicopters.
• Power Mech Projects was awarded a ₹425 crore order from an Adani Power subsidiary for a thermal project and an additional ₹972 crore order from the National Highways Authority of India.

Currency Market Update

In currency news, the Indian rupee appreciated against the US dollar, closing at its strongest level in three months. The rupee ended the day at ₹85.46, gaining 33 paise against the dollar.

This market update reflects the dynamic nature of trading and investment strategies as traders navigate through evolving market conditions.