The NSE Nifty 50 may find immediate support at 22,970 level on the downside, according to Aakash Shah, technical research analyst at Choice Equity Broking Pvt.

A breakdown below this mark could lead to further declines towards 22,775 and 22,500, “reinforcing a cautious outlook as Nifty struggles to hold critical support levels”, he said.

On other hand, the index faces key resistance at 23,180, and a decisive breakout above this level could drive further gains towards 23,350 and 23,500, the analyst added.

Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd., recommended a “buy-on-dips” strategy, as long as the index holds 22,780 level.

The Bank Nifty has formed a spinning bottom candle on the daily scale on technical levels, according to Yedve, which indicated uncertainty.

“The low of the spinning bottom candle at 48,734 will serve as support, while the high at 49,702 will act as an immediate hurdle,” Yedve said. He advised traders to closely monitor these levels for potential opportunities.

Market Recap

The Indian equity benchmark indices closed lower for the sixth day in a row, as stocks of Mahindra & Mahindra Ltd. and Eicher Motors Ltd. dragged the most.

The NSE Nifty 50 ended 26.55 points, or 0.12% lower at 23,045.25, and the 30-stock BSE Sensex ended 122.52 points, or 0.16% down at 76,249.54.

The Nifty Bank, however, closed 0.15% or 76.05 points higher at 49,479.45.

F&O Cues

The Nifty February futures were down 0.09% to 23,153 at a premium of 78 points, with the open interest up by 1.92%.

The open interest distribution for the Nifty 50 Feb. 13 expiry series indicated most activity at 24,000 call strikes, with the 22,500 put strikes having maximum open interest.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the sixth straight session on Wednesday as they offloaded stocks worth approximately Rs 4,969.30 crore.

Domestic institutional investors, on the other hand, stayed net buyers for the sixth straight session as they mopped up equities worth Rs 5,929.24 crore, according to provisional data from the National Stock Exchange.

Stocks To Watch

  • Bharat Forge: The company to partner with Liebherr to set up a manufacturing unit to address the global aerospace industry demand.

  • NTPC Green: ONGC and NTPC Green JV acquired Ayana Renewable Power for an Enterprise Value of Rs 19,500 crore.

  • Reliance Industries: The company incorporated its arm in Singapore to set up global capability centre to consolidate research and development operations. The company to make an investment $100,000 towards initial subscription of shares

  • Tata Power: The arm to partner with ONGC to explore joint opportunities in the Battery Energy Storage.

  • ICICI Bank: The company to retain Majority Stake in ICICI Prudential AMC. The JV Partner Prudential PLC plans listing of its AMC unit.

  • Kotak Mahindra Bank: RBI communicated its decision to lift restrictions placed on the bank.

  • Rites: The company signed a memorandum of understanding with Centre for Development of Advanced Computing to partner on IT solutions for consultancy works.

Global Cues  

Stocks in the Asia-Pacific region advanced on Thursday, while the treasuries saw a selloff taking overnight cues from Wall Street after a hotter than expected inflation shot down rate cut expectations.

Japan’s Nikkei was up 443 points, or 1.13% at 39,401, while South Korea’s Kospi rose 0.5%, or 13 points to 2,562 as of 6:35 a.m. Future contracts in China and Hong Kong hinted at a positive stock start.

Australian and New Zealand yields edged higher after Treasury yields after the US 10-year yield ended the session nine basis points higher, its biggest one-day move since December.

The yield on the US bonds rose following a hawkish outlook on a higher-than-expected rise in US prices. Traders have now adjusted their bets on US rate cuts to project the first and only cut this year to come in December, according to Bloomberg.

The monthly gauge of the US consumer price index rose 0.5% in January, the most since August 2023. Core CPI — which excludes food and energy costs — increased 0.4% in January.

Meanwhile, President Donald Trump called for lower interest rates, seeking to raise pressure on the Federal Reserve. “Interest rates should be lowered, something which would go hand in hand with upcoming tariffs,” Trump said in a post on social media.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.05% up at 107.98.

Stocks on Wall Street continued their mixed trade for the second consecutive day on Wednesday. The S&P 500 and The Dow Jones Industrial Average slipped 0.27% and 0.50%, respectively. The tech-heavy Nasdaq Composite rose 0.03%.

Crude oil prices fell after Trump and Vladimir Putin agreed to talks on ending the war in Ukraine. The Brent crude fell 2.36% at $75.18 a barrel as of 6:45 a.m. IST, and the West Texas Intermediate was down 0.14% at $71.27.

Currency Update

The Indian rupee settled weaker against the US dollar on Wednesday, as it slipped by 6 paise to close at 86.89. However, the domestic currency had opened at a relatively stronger note, as it had appreciated by 39 paise to start at 86.44.

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