The NSE Nifty 50, which recorded the best week in over four years on Friday, is having a support at 23,000, above which traders can buy on dips, according to analysts.

The Nifty has reached its critical resistance around the moving averages ribbon at 23,400, according to Ajit Mishra, senior vice president research at Religare Broking Ltd.

A decisive breakout above 23,400 can fuel momentum, driving the index towards 23,800–24,100. On the downside, the 22,750–23,000 zone is expected to serve as crucial support, Mishra said. “Given the recent surge, traders should focus on selective stock-picking with a favourable risk-reward ratio rather than chasing momentum.”

The immediate support for the Nifty is placed near the 23,000 level, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

The index faces short-term resistance around 23,520, aligned with the 100-day simple moving average. “If Nifty stays above 23,000, then traders are advised to follow a buy-on-dips strategy.”

The Bank Nifty has formed a bullish candle on both the daily and weekly charts, indicating strength. The next major resistance for the index is near 50,650, Yedve said. “A sustained move above 50,650 could trigger a fresh breakout in Bank Nifty.”

Market Recap

Indian equities had their best weekly run in years on Friday as investors shrugged off negative global sentiments to chase attractive stocks hammered by a recent correction.

The NSE Nifty 50 closed 159.75 points or 0.69% higher at 23,350.40, while the BSE Sensex ended 557.45 points or 0.73% up at 76,905.51. During the day, the Nifty jumped to 23,402.70, while the Sensex rose to 77,041.94.

FII/DII Activity

Foreign portfolio investors remained net buyers for the second straight day on Friday as they bought equities worth Rs 7,470.4 crore, the highest buying from the FPIs so far this year.

Domestic institutional investors remained net sellers of Indian equities for the second consecutive day as they net offloaded equities worth Rs 3,202.3 crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty March futures rose 0.78%, reaching 23,379 and traded at a premium of 29 points. The open interest for the Nifty February futures dropped 6.89%.

For Nifty Options set to expire on March 27, the maximum call open interest is positioned at 24,000, while the maximum put open interest is at 23,000.

Additionally, Hindustan Copper, IndusInd Bank and Polycab are currently listed under the securities in the ban period.

Major Stocks In News 

  • IndusInd Bank: The bank’s board will need to find replacements for Chief Executive Officer Sumant Kathpalia by October, according to two sources cited by NDTV Profit.

  • Larsen & Toubro: The company has approved a long-term borrowing of up to Rs 12,000 crore via external commercial borrowings, or other means.

  • Godrej Properties:  The company acquired acquired approximately 10 acres of land in Yelahanka, Bengaluru, with the revenue potential of Rs 2,500 crore.

Global Cues

Stocks in the Asia Pacific region were mixed during early trade on Monday. US index futures climbed on signs that the next round of President Donald Trump’s trade tariffs could be more measured than previously suggested.

South Korea’s Kospi rose 0.09%, or 2.43 points to 2,645.56, while Australia’s S&P/ASX 200 was down 0.04% at 7,927.80 as of 6:54 a.m. Markets in Japan fluctuated between gains and losses on Monday, while the Hang Seng futures were down 1.7%.

This comes after a rally in tech giants spurred a late-day rebound in US stocks, with S&P 500 erasing a slide of over 1% and ended 0.08% higher on Friday. The Nasdaq Composite was up 0.52% and Dow Jones Industrial Average closed 0.08% higher.

Among important events today, India, US and UK will announce Manufacturing and Services PMI, while Singapore will announce its CPI data.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — rose 0.01% to 104.10. The benchmark yield rose three basis points at 4.27%.

Crude oil fell on Monday with the Brent crude falling 0.01% at $72.15 a barrel as of 6:54 a.m. IST, and the West Texas Intermediate was up 0.04% at $68.31.

Currency Update

The Indian rupee strengthened 39 paise to close at Rs 85.97 against the greenback on Friday, according to Bloomberg. It had closed at Rs 86.36 on Thursday.

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.

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