On the heels of a notable rally, the NSE Nifty 50 index has found itself at a pivotal point, with analysts suggesting that surpassing the 23,810 mark could propel it towards 24,080. After a streak of impressive gains, the index paused on Tuesday, closing nearly unchanged, as it encountered resistance at the 23,800 threshold.
Key Support and Resistance Levels
According to Rupak De, a senior technical analyst at LKP Securities, the immediate support for the Nifty stands at 23,600. A breach of this support could signal a downturn, potentially dragging the index down to 23,300. Meanwhile, Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Intermediates, highlighted that the Nifty remains above its 100-day simple moving average at 23,500, which acts as a crucial support level.
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Resistance Levels:
- 23,800 (Current resistance)
- 23,810 (Breakout target)
- 24,080 (Near the 200-day moving average)
- Support Levels:
- 23,600 (Immediate support)
- 23,300 (Critical support if breached)
Bank Nifty Insights
The Bank Nifty index is also in focus, facing resistance around 52,000. Yedve emphasized that if the index maintains above 50,980, investors should consider a "buy on dips" approach.
Market Overview
India’s equity markets continued their upward trajectory on Tuesday, marking the seventh consecutive day of gains for the Nifty and Sensex. This winning streak is the longest seen since September 2024. Although the indices reached a three-month peak, they experienced a slight pullback towards the day’s end.
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Nifty 50 Performance:
- Closed at 23,668.65, up 10.30 points or 0.04%.
- BSE Sensex Performance:
- Ended at 32.81 points higher, also reflecting a 0.04% gain.
FII and DII Trends
Continuing the trend, foreign portfolio investors have remained net buyers for the fourth consecutive session, purchasing equities worth ₹5,371.57 crore. Conversely, domestic institutional investors shifted to net sellers, offloading ₹2,768.87 crore worth of stocks, as per provisional data from the National Stock Exchange.
Futures and Options Insights
In the derivatives market, Nifty March futures dipped by 0.14%, settling at 23,705 with a premium of 37 points. The open interest for these futures decreased by 9.94%. For the upcoming March 27 options expiry, the highest call open interest is at 25,000, while the highest put open interest is positioned at 23,000.
Notable Stock Developments
Several major stocks made headlines recently:
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Star Health: Denies claims from the Insurance Regulatory and Development Authority regarding lapses in claims processing.
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Maruti Suzuki: Received a draft tax assessment order amounting to ₹2,966 crore from the Income Tax Department.
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Ireda: Approved a borrowing plan for up to ₹30,800 crore for the fiscal year 2026.
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NCC: Secured contracts worth ₹10,805 crore from BSNL for BharatNet projects in Uttarakhand and Madhya Pradesh.
- ONGC: Plans to invest up to ₹3,300 crore in its subsidiary, ONGC Green.
Global Market Trends
Asian markets showed modest gains in early Wednesday trading, as investors sought clarity following mixed signals from the US. The Nikkei and Kospi both rose by 0.3%, while Australia’s S&P/ASX 200 and the Hang Seng increased by 0.7%. In the US, futures for the S&P 500 and Dow Jones Industrial Average climbed by 0.7%.
- Current Rates:
- US Dollar Index: 104.31
- 10-Year US Bond Yield: 4.33%
- Brent Crude Oil: $73.29 per barrel, up 0.37%
Cryptocurrency markets faced a slight decline, with Bitcoin dropping 0.18% to $87,738.19, while gold prices dipped 0.11% to $3,016.83.
Currency Movements
The Indian rupee ended an eight-day rally against the US dollar on Tuesday, closing down by 12 paise at 85.76 as both the dollar index and crude oil prices rose. Prior to this, the rupee had reached a two-month high of 85.64 against the dollar.
In summary, as the Nifty and Bank Nifty navigate critical resistance and support levels, traders and investors are advised to keep a close watch on market movements and international cues for informed decision-making.
