The weak sentiment is likely to continue for the NSE Nifty 50, which snapped three sessions of gains on Monday, with 22,370 serving as an immediate support, according to analysts.

Technically, on the daily chart, the Nifty formed a shooting-star candlestick pattern near the bearish-gap hurdle of 22,668–22,720, according to Hrishikesh Yedve, research analyst at Asit C Mehta Investment Interrmediates Ltd.

“This suggests 22,720 will act as an immediate hurdle for the Nifty, followed by the previous breakdown point of 22,800,” Yedve said. “On the downside, the nine-day simple moving average is placed near 22,370, serving as an immediate support.”

A bearish candle on the daily charts indicates further weakness from the current levels. However, the short-term market texture is still on the positive side, according to Shrikant Chouhan, head of equity research at Kotak Securities.

“For day traders, 22,500 would be the key level to watch. As long as the market is trading below this level, the weak sentiment is likely to continue,” Chouhan said.

On the downside, it can retest the levels of 22,350–22,300. Conversely, if it moves above 22,500, the sentiment can change and the market can rally to 22,650–22,700, he added.

The Bank Nifty, which settled the day on a negative note at 48,217, formed a small red candle with a long upper shadow, indicating selling pressure on higher levels, Yedve said.

“On the upside, the index is facing resistance near 48,660 levels. A sustained breakout above 48 might propel the index to 49,000, while sustaining below 47,840 could trigger a fresh weakness,” Yedve said.

FII/DII Activity

Foreign portfolio investors continued to remain net sellers of Indian equities for the 13th straight session on Monday, while domestic institutional investors stayed net buyers for the 23rd straight session

FPIs offloaded stocks worth Rs 485 crore and domestic institutional investors bought equities worth Rs 263.51crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty March futures were down 0.63% to 22,515.65 at a premium of  55.35 points, with the open interest down 2.09%.

The open interest distribution for the Nifty 50 March 13 expiry series indicated most activity at 23,000 call strikes, and the 22,000 put strikes having the maximum open interest.

Market Recap

The benchmark equity indices ended in the red on Monday, with realty, and oil and gas sectors declining the most.

The Nifty ended 92.20 points or 0.41% lower at 22,460.30, while the BSE Sensex closed 217.41 points or 0.29% down at 74,115.17.

Major Stocks In News

  • NTPC: NTPC Group has signed MoUs worth Rs 96,000 crore with Chhattisgarh government along with arm NTPC Green.

  • Indusind Bank: The bank has found accounting discrepancies during internal review of derivatives portfolio. The adverse impact is nearly 2.35% of bank’s net worth as of December 2024.

  • Hindustan Zinc: The company has approved the issue of NCDs worth up to Rs 500 crore.

  • Bharat Electronics: The company has received order worth Rs 843 crore. The major orders include RF seekers, vessel and air traffic management system.

  • Anupam Rasayan: The company has signed a 10-year letter of intent valued at $106 million (Rs 922 crores) with a Korean multinational to enhance delivering advanced chemical solutions and strengthens its presence in high-growth global markets.

Global Cues

Stocks in the Asia Pacific region extended fall for the third consecutive sessions on Tuesday, taking cue from the meltdown in US stocks and amid fear that tariffs and government firing will stall economic growth in US.

South Korea’s Kospi fell 2.08%, or 53.38 points to 2,517.01, while Australia’s S&P ASX 200 was down 1.60% at 7,834.60 as of 7:10 a.m. Markets in Japan and Hong Kong fell on Tuesday, while the benchmark index in China were relatively flat. This comes after S&P 500 fell 2.7% on Monday, while the Nasdaq Composite slipped over 3% making it the worst day for the index since 2022. The Dow Jones Industrial Average fell over 2% on Monday.

Among important events today Japan will announce its GDP, household spending and money stock data. US is also expected to release US job openings today.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — declined for the seventh consecutive session. The benchmark yield fell one basis points to 4.20%.

Crude oil extended fall on Tuesday after falling to six-month low on Monday, with the Brent crude falling 0.64% at $68.84 a barrel as of 7:13 a.m. IST, and the West Texas Intermediate was down 0.82% at $65.49.

Currency Update

The rupee ended near one-week low against the US dollar on Monday, amid persistent demand for the greenback as risk-off sentiment increased among investors on tariff fears.

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