The NSE Nifty 50 managed to close higher by 7.8 points, or 0.03%, reaching 22,552.5. On the other hand, the BSE Sensex dipped slightly, ending 7.51 points or 0.01% lower at 74,332.5. Analysts predict that the levels of 22,720 and 22,800 will serve as strong resistance points for the Nifty, which has managed to stay above the initial bearish gap of 22,450–22,514.

Market Overview: Nifty and Sensex Trends

The benchmark index opened on a positive note on Friday, maintaining momentum and closing the day with a bullish sentiment. According to Hrishikesh Yedve, a research analyst at Asit C Mehta Investment Intermediates Ltd, the formation of a green candle indicates market strength. He highlights that 22,668–22,720 marks the next significant resistance level, with the previous breakdown point at 22,800.

• Immediate Support: The Nifty index has immediate support at 22,240.
• Trading Strategy: Yedve advises traders to wait for a breakthrough above 22,800 before committing further, suggesting buying near support levels and taking profits at resistance.

Insights on Bank Nifty

For the Bank Nifty, the critical level to watch is the 48,000 double bottom support zone. Amol Athawale, Vice President of Technical Research at Kotak Securities, states that if the index maintains trading above this level, it could target 49,300 to 49,700 as it approaches the 50-day simple moving average. However, a drop below 48,000 could jeopardize the current uptrend.

Weekly Market Recap

The equity markets closed relatively flat on Friday, marking the end of a three-week downturn for the Nifty, which recorded its best weekly performance in three months. The Nifty’s slight gain of 7.8 points signals a potential recovery, while the Sensex’s minor decline reflects mixed sentiment.

Major Corporate Developments

• Tata Power: The company signed an agreement with the Andhra Pradesh government to invest around Rs 49,000 crore in renewable energy projects, targeting up to 7,000 MW.

• Mahindra & Mahindra: Reported a 10.4% year-on-year increase in production, totaling 81,302 units in February. Sales also saw a 13% rise, reaching 80,641 units compared to the previous year.

• GMR Airports Infrastructure: Acquired a 10% stake in Delhi International Airport, increasing its ownership from 64% to 74%.

• Coal India: Entered into an agreement with IIT Hyderabad to establish a Centre of Excellence focusing on clean coal technology and achieving net-zero emissions.

Global Market Watch

Asian markets displayed upward trends on Monday, amidst concerns regarding the US economy. Notably, China’s inflation dropped below zero for the first time in a year. Key movements included:

• South Korea’s Kospi: Increased by 0.49% to 2,576.08.
• Australia’s S&P ASX 200: Rose by 0.27% to 7,969.80.

In contrast, some indices in Japan and Hong Kong experienced declines. On the US side, the S&P 500, Nasdaq, and Dow Jones all saw positive gains on Friday.

Economic Indicators to Watch

Upcoming announcements will include Germany’s industrial production figures and Pakistan’s rate decision, along with Japan’s current account.

The dollar index, reflecting the greenback’s performance against major currencies, has seen a decline for the sixth consecutive session, with the benchmark yield dropping to 4.26%.

Commodities and Currency Update

Crude oil prices fell on Monday, with Brent crude down 0.41% at $70.07 per barrel, and West Texas Intermediate declining 0.49% to $66.71.

In the forex market, the Indian rupee strengthened by 24 paise, closing at 86.88 against the US dollar, benefiting from the continued drop in the dollar index and falling oil prices.

This week promises significant developments in the markets, making it crucial for investors to stay informed and agile.