On Tuesday, Indian stock market indices, including Sensex and Nifty 50, are anticipated to open on a weaker note, influenced by a significant downturn in international markets. The Gift Nifty, a key indicator for Indian market trends, is showing a gap-down start, currently hovering around 22,384, which reflects a drop of about 131 points compared to the previous close of Nifty futures.
Market Overview of Sensex and Nifty 50
The domestic equity market faced challenges on Monday, with the Nifty 50 falling below the crucial 22,500 mark. The Sensex reported a decline of 217.41 points, or 0.29%, closing at 74,115.17, while the Nifty 50 ended lower by 92.20 points, or 0.41%, finishing at 22,460.30.
What to Watch for Sensex Today
The Sensex experienced a drop of 217 points on Monday, forming a bearish candle on daily charts, which indicates potential further declines. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the short-term market sentiment remains cautiously optimistic.
- Key Level to Monitor: 74,300
- Downside Support Levels: 74,000 – 73,700
Chouhan noted that if the Sensex can surpass the 74,300 mark, it could lead to a rally potentially reaching 74,500 – 74,700.
Nifty 50 Analysis and Projections
The Nifty 50 also showed signs of weakness, closing down 92 points on March 10. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, pointed out that a small negative candle formed on the daily chart, suggesting selling pressure due to resistance.
- Immediate Resistance: 22,500
- Support Level: 22,200
Shetti indicated that while the short-term trend for Nifty 50 remains positive, a decisive move beyond 22,700 could pave the way for further gains.
Insights from Market Analysts
Rupak De, Senior Technical Analyst at LKP Securities, observed that Nifty 50 encountered resistance at the 21 EMA (Exponential Moving Average), leading to a decline towards 22,400.
- Support: 22,400
- Resistance: 22,750
De emphasized that if Nifty 50 maintains its position above 22,400, the sentiment is unlikely to weaken significantly.
VLA Ambala, Co-Founder of Stock Market Today, reiterated that the market is currently in a ‘sell on the rise’ phase, with significant resistance at the 20-day EMA. If the previous day’s low is breached, it may lead to a retest of levels seen in February 2025.
Bank Nifty Predictions
The Bank Nifty also faced a setback, losing 280.70 points, or 0.58%, to close at 48,216.80. This index is now critically positioned with 47,800 as a significant support level.
Vaishali Parekh, Vice President of Technical Research at PL Capital Group – Prabhudas Lilladher, highlighted that failure to maintain the 47,800 support could trigger fresh selling pressure, with 46,000 as the next support level.
- Upside Resistance: 49,500 (50-EMA)
Parekh advised that a decisive move above the 50-EMA could enhance the bias for Bank Nifty, opening possibilities for a rebound in the coming days.
Conclusion
As investors brace for the opening, staying informed about these critical levels can help navigate the market’s volatility. Keep a close eye on the trends, as both Sensex and Nifty 50 show signals that could dictate trading strategies in the coming sessions.
