Asian equities traded higher after China pledged more steps to revive consumption and the US markets ended higher.

Japan’s Nikkei was up 1.3%, Australia’s S&P ASX 200 gained 0.6% while South Korea’s Kospi added 1.5%. Futures in Hong Kong were up 1.8%.

In the US, the S&P 500 gained 2.13% to close at 5,638.94, the Dow Jones rose 1.65% to 41,488.19, and the Nasdaq Composite surged 2.61% to 17,754. However, futures trading indicated a weaker opening.

The NSE Nifty 50 is consistently finding support near 22,300 and selling pressure is likely to accelerate if the index falls below this level, according to analysts.

Over the past week, the index has been consolidating within the 22,300–23,700 range. It is encountering resistance near the bearish gap of 22,668–22,720, according to Hrishikesh Yedve, research analyst at Asit C Mehta Investment Interrmediates Ltd.

“As long as the index holds above 22,300, a pullback towards 22,600–22,700 remains possible. However, if Nifty breaches 22,300, the weakness could extend towards the 22,000 level,” Yedve said.

Technically, the market is exhibiting non-directional activity. On the lower side, it is consistently finding support near 22,300, while profit booking has been witnessed between 22,600 and 22,650, according to Amol Athawale, vice president of technical research at Kotak Securities.

“For the bulls, the key breakout zone is at 22,650. A dismissal of the 22,650 breakout could push the market towards 22,800–22.900. Conversely, if the market falls below 22,300, selling pressure is likely to accelerate. Below this level, the market could retest levels of 22,100–22,000,” Athawale added.

The Bank Nifty has formed a red candle on the daily scale while holding the key support level of 47,840. As long as it remains above 47,840, a relief rally can be possible, according to Yedve.

“On the higher side, the 21-day exponential moving average is positioned near 48,620, serving as a key resistance level. However, a sustained break below 47,840 can trigger further weakness,” he added.

Market Recap

The benchmark equity indices ended a holiday-shortened week lower on Thursday, with the NSE Nifty 50 extending the fall for the second day and the BSE Sensex declining for the fourth straight day.

The Nifty ended 73.30 points or 0.33% lower at 22,397.20, while the BSE Sensex closed 200.85 points or 0.27% down at 73,828.91 after they opened in the green.

FII/DII Activity

Foreign portfolio investors remained net sellers of Indian equities for the 16th straight session on Friday, while domestic institutional investors stayed net buyers for the 26th straight session.

The FPIs offloaded stocks worth Rs 792.9 crore and domestic institutional investors bought equities worth Rs 1,723.8 crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty March futures were down 0.41% to 22,444.25 at a premium of 47.05 points, with the open interest up 0.60%.

The open interest distribution for the Nifty 50 March 13 expiry series indicated most activity at 22,400 call strikes, and the 22,400 put strikes had the maximum open interest.

Major Stocks In News

  • IndusInd Bank: HDFC Mutual Funds’ total holdings in the IndusInd Bank crossed 5%. IndusInd Bank shares placed under short-term additional surveillance measure stage 1 by NSE.

  • GR Infraprojects: The company has emerged as the selected bidder for an order worth Rs 4,263 crore from the National Highways Authority of India.

  • Dr Reddy’s Laboratories: The company’s initiated nationwide recall of levetiracetam in the US due to mislabeling of Infusion Bag.

  • Tata Motors: The company to consider raising up to Rs 2,000 crore via NCDs on private placement basis on March 19.

Forex Market

The rupee ended stronger against the US dollar on Thursday as a decline in inflation and rise in industrial production boosted investors’ confidence.

The domestic currency ended 21 paise higher at 87 against the greenback, according to Bloomberg. It ended at 87.21 a dollar on Wednesday.

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