The NSE Nifty 50’s immediate support is at 22,200–22,300 after the stock markets ended in the green on Monday, while 22,600 will be the immediate resistance, according to analysts.

The index formed a bullish piercing-line candlestick pattern, indicating buying interest at lower levels near the 50% retracement of the previous upward move, according to Bajaj Broking Research.

A move above Monday’s high at 22,577 can trigger an upside towards 22,700 and 23,000 in the coming sessions. Immediate support is seen at 22,200–22,300 and sustaining above this level will maintain the current pullback trend, it added.

“We are of the view that as long as the market is trading above 22,350, the bullish sentiment is likely to continue,” Shrikant Chouhan, head of equity research at Kotak Securities, said. “On the higher side, 22,600 would be the immediate resistance zone for the bulls.”

Following a breakout above 22,600, the market can move towards 22,675–22,700. On the flip side, if the market falls below 22,350, the sentiment can change, Chouhan said. “Below this level, traders may prefer to exit their long positions.”

Immediate resistance for the Bank Nifty is placed at 48,600 being the confluence of the last-week high and 20-day exponential moving average. A move above the same will signal a reverse of the corrective trend and open upside towards 49,200 levels in the coming weeks, according to Bajaj Broking.

While a failure to move above 48,600 will keep the bias down, a breach below the lower band of the last nine weeks’ consolidation range at 47,700–50,500 will signal an acceleration of decline towards 47,000 in the coming weeks, it added.

Market Recap

India’s benchmark equity indices ended higher on Monday, following a jump in global markets.

The NSE Nifty 50 ended 111.55 points or 0.5% higher at 22,508.75, while the BSE Sensex closed 341.04 points or 0.46% up at 74,169.95.

FII/DII Activity

Foreign portfolio investors remained net sellers of Indian equities for the 17th straight session on Monday as they offloaded stocks worth Rs 4,488.5 crore.

Domestic institutional investors stayed net buyers for the 27th straight session as they net bought equities worth Rs 6,000.6 crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty March futures were up 0.65% to 22,584.30 at a premium of 75.55 points, with the open interest down 2.04%.

The open interest distribution for the Nifty 50 March 20 expiry series indicated most activity at 23,500 call strikes, and the 22,000 put strikes had the maximum open interest.

Major Stocks In News

  • Bajaj Finserv: Allianz SE has signed binding agreements to sell its 26% stake in Bajaj Allianz General Insurance Co. and Bajaj Allianz Life Insurance Co. to Bajaj Group for approximately €2.6 billion. The proceeds may be received in multiple tranches.

  • Religare Enterprises: The board initiated a governance review of REL and its subsidiaries, Religare Finvest and Religare Housing Development Finance. During the review, a cash flow gap was identified for the upcoming months. To address this, the board has reached out to the Burman Group for immediate financial support and assistance.

  • Vedanta: On Monday, Chairman Anil Agarwal stated that each of the company’s four demerged entities has the potential to become a $100 billion enterprise. In a letter to stakeholders, he highlighted that the restructuring would result in independent companies with robust capital structures, clear sector focus, and promising growth prospects.

Global Cues

Asian stocks were trading higher early Tuesday, tracking gains on Wall Street buoyed by US retail sales data that eased recession concerns and renewed optimism for China’s economy.

Japan’s Nikkei 225 was up 1.25%, while Australian benchmark S&P/ASX 200 gained 0.5%. South Korea’s Kospi was up 0.88%. Futures showed Hong Kong’s benchmark may also open higher.

In the US, the S&P 500 ended 0.44% higher, while the Dow Jones Industrial Average added 0.85%. The Nasdaq gained 0.3%.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — fell 0.34% to 103.37. The US Federal Reserve and the Bank of Japan will announce their monetary policy decision on Wednesday.

The yield on the 10-year US Treasury bond was down two basis points at 4.29%.

Crude oil rose on Tuesday with the Brent crude up 0.7% at $71.07 a barrel as of 6:45 a.m. IST, and the West Texas Intermediate rising 0.6% at $67.58.

Forex Market 

The rupee strengthened sharply against the US dollar on Monday as India’s back-to-back strong economic data continued to fuel investors.

The domestic unit ended 20 paise higher at 86.80 against the greenback, the highest close since Feb. 24. Intraday, the rupee rose 24 paise to 86.76, according to Bloomberg data.

. Read more on Markets by NDTV Profit.As long as the market is trading above 22,350, the bullish sentiment is likely to continue.  Read MoreMarkets, Notifications, Business 

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