NSE Nifty 50, which rose marginally on Monday and edged closer to the 23,000-mark, continues to see key support at 22,800-level, according to analysts.

“For the third time in recent weeks, the index successfully defended the 22,800 level, reinforcing it as a strong support,” said Aditya Gaggar, director of Progressive Share Brokers Pvt.

On other hand, the 23,100 level remains a key immediate resistance for the index and a breakout in either direction is essential for establishing a clear market trend, he added.

If Nifty 50 trades above 22,800 levels, then the “pullback formation is likely to continue”, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

The analyst also mentioned that the Nifty 50 could rise to 23,000, with a potential for further gains that may push the index to 23,075.

On the flip side, the sentiment could change if it slips below 22,800. In such a scenario, the index could decline till 22,725-22,650 levels, he added.

In the near term, the Nifty 50 is expected to remain a sell-on-rise prospect unless it conclusively surpasses 23,150 on a closing or sustained basis, said Rupak De, senior technical analyst at LKP Securities. The support for the index is placed at 22,800, he added.

Market Recap

India’s benchmark equity indices hit pause on their longest losing streak in two years, as shares of heavyweights like HDFC Bank Ltd. and Reliance Industries Ltd. gained. Pharmaceutical and metal stocks rallied while information technology and autos came under pressure.

After a weak opening and intraday recovery, the Nifty 50 ended 30.25 points or 0.13% higher at 22,959.5, and the Sensex closed 57.65 points or 0.08% up at 75,996.86.

F&O Cues

  • The Nifty February futures were up 0.21% to 23,043.40, at a premium of 83.9 points, with the open interest down by 1.11%.

  • The open interest distribution for the Nifty 50 Feb. 20 expiry series indicated most activity at 23,500 call strikes, with the 23,000 put strikes having maximum open interest.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the ninth straight session on Monday as they offloaded stocks worth approximately Rs 3,937.8 crore.

Domestic institutional investors stayed net buyers for the ninth straight session as they mopped up equities worth Rs 4,759.8 crore, according to provisional data from the National Stock Exchange.

Stocks To Watch

  • One 97 Communication: Paytm has partnered with SBI Mutual Fund to launch JanNivesh Rs 250 systematic investment plan.

  • SBI Cards: The company has appointed Salila Pande as the managing director and chief executive officer of the company.

  • Zomato: The company introduced Nugget, an AI-native, no-code customer support solution designed to help businesses scale their support operations effortlessly. 

Global Cues 

Stocks in the Asia-Pacific region traded mixed on Tuesday amid lack of major cues, with the Wall Street being closed for a public holiday.

Japan’s Nikkei was up 73 points, or 0.19% at 39,246, while South Korea’s Kospi fell 0.11%, or 3 points to 2,607 as of 6:30 a.m. Future contracts in China hinted at a flat start, while those in Hong Kong were poised to open higher.

Shares of European defence companies rose on Monday, on likely rise in military spending after the US asked EU nations to spell out what security guarantees they can offer Ukraine to ensure peace.

The Australian dollar held near a two-month high ahead of the key interest rate decision by the central bank. Analysts expect the country’s first rate cut in four years, according to Bloomberg.

Meanwhile, the US dollar index was steady on Tuesday. The index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.23% up at 106.81.

Australian interest rate decision, Singapore budget for fiscal 2025 and January unemployment figures in Hong Kong will be the key data points to watch in Asia during the day.

Wall Street was shut for a public holiday on account of Washington’s Birthday. Meanwhile, Federal Reserve Governor Christopher Waller said recent economic data support keeping interest rates on hold. But, policymakers will be back to cutting rates at some point this year if inflation behaves as it did in 2024, he said.

Crude oil prices advanced after OPEC+ delegates said the grouping was considering delaying restoring output. The Brent crude rose 0.64% at $75.22 a barrel as of 6:40 a.m. IST, and the West Texas Intermediate was up 0.83% at $71.33.

Money Market Update

The Indian rupee slipped against the US dollar on Monday. The local currency weakened by 2 paise to close at 86.85 against the greenback, according to Bloomberg. It had closed at 86.83 on Friday.

. Read more on Markets by NDTV Profit.On the flip side, the 23,100 level remains a key immediate resistance for NSE Nifty 50, an analyst said.  Read MoreMarkets, Business, Notifications 

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