Traders should adopt a buy-on-dip strategy amid a bullish market sentiment as the benchmark indices closed at over a month high on Thursday, according to analysts.

The immediate support for Nifty is placed near the 22,940–22,974 level, forming a bullish gap, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd. “If the Nifty remains above 22,940, it could extend its rally towards 23,500–23,600.”

Yedve also advised a buy-on-dip strategy for the short term, given the bullish setup.

The overall market sentiment looks to be bullish, making buying during price dips and selling during rallies the preferred approach for day traders, according to Shrikant Chouhan, head of equity research at Kotak Securities.

Soon, 23,100 and 23,000 or the 50-day simple moving average will be key support zones, while 23,300 and 23,400 can serve as key resistance areas for day traders, he added.

If the market drops below 23,000, the mood can shift. At this point, traders may choose to close their buy positions, according to Chouhan.

The Bank Nifty managed to hold the key support at 49,650 and successfully crossed the 50,000-resistance level, forming a green candle. The next significant resistance level for the index is around 50,640, aligning with its earlier swing high, according to Yedve.

“As long as Bank Nifty remains above 49,650, the bullish momentum is expected to continue. Traders are advised to adopt a buy-on-dips approach to capitalise on short-term opportunities,” Yedve said.

Market Recap

The Indian equities ended at their highest level in over a month on Thursday after the US Federal Reserve signalled more interest rate cuts later this year, seeing brief increase in inflation due to Trump’s tariff policies.

The NSE Nifty 50 closed 283.05 points or 1.24% higher at 23,190.65, while BSE Sensex ended 899.01 points or 1.19% to end at 76,348.06.

FII/DII Activity

Foreign portfolio investors turned net buyers of Indian equities on Thursday after a day as they mopped stocks worth Rs 3,239.14 crore.

Domestic institutional investors turned net sellers after 29 straight sessions of buying, as they net offloaded equities worth Rs 3,136.02 crore, according to provisional data from the National Stock Exchange. DII last turned net sellers of equities on Feb. 4, where they offloaded equities worth Rs 430.7 crore.

F&O Cues

The Nifty March futures rose by 0.95% to reach 23,200, trading at a premium of 10 points. The open interest for Nifty February futures decreased by 6.26%.

For Nifty Options expiring on March 27, the highest Call open interest is at 24,000, while the highest Put open interest is at 22,000.

Additionally, the securities currently under the ban period are Hindustan Copper, IndusInd Bank, Manappuram Finance, Polycab, and SAIL.

Major Stocks In News 

  • Manappuram Finance: Bain Capital will invest Rs 4,385 crore in the company. It will buy 9.29 crore shares and 9.29 crore warrants in the company. Bain Capital is to be classified as a promoter of Manappuram Finance after the completion of the deal. It is set to buy an 18% stake in Manappuram Finance through preferential allotment of shares. Warrants issued to Bain Capital are convertible to equivalent equity shares on a 1:1 ratio.

  • IndusInd Bank: The Board has engaged an independent professional firm to thoroughly investigate accounting discrepancies. The firm will review the accuracy and implications of the accounting treatment of derivative contracts, provide guidance, identify any lapses, and establish accountability related to these issues.

  • JSW Energy: The company will raise Rs 800 crore via non-convertible debentures in two tranches.

Money Market

The Indian rupee strengthened against the dollar for the sixth consecutive session on Thursday to close at the highest level in nearly two months after the US Federal Reserve maintained the interest rates.

Global Cues

Asian equities traded cautiously early Friday, with markets uncertain about US President Donald Trump’s next move in the trade war. Japan’s stock market started the day on a positive note, but South Korea’s shares took a hit, and Hong Kong’s equity index futures were also down.

The Nikkei rose 0.17%, while Kospi fell 0.52%. Hang Seng futures were down 0.5%. Australia’s S&P/ASX 200 gained 0.1%.

In the US, futures saw a slight uptick after the S&P 500 closed marginally lower on Thursday. Contracts for S&P 500 were up 0.1%, while those for Dow Jones and Nasdaq were higher by 0.06% and 0.17%.

The yield on 10-year US Treasury bond was little changed at 4.24%. The dollar index stood at 103.833.

Brent crude prices rose 0.7% to over $72 per barrel. Gold prices eased from its record level to $3,043 an ounce.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.

. Read more on Markets by NDTV Profit.For day traders, 23,300 and 23,400 can serve as key resistance areas, says Shrikant Chouhan of Kotak Securities.  Read MoreMarkets, Notifications 

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