A pullback formation is likely to continue as long as the NSE Nifty 50 is trading above the support zone of 22,000, according to analysts.

Technically, it has formed a bearish candle on the daily charts and is still holding a lower top formation on the intraday charts, which is largely negative, according to Shrikant Chouhan, head of equity research at Kotak Securities.

“We believe that the current market texture is weak, but oversold. Hence, we could expect a quick pullback rally from the current levels,” Chouhan said.

On the upside, 22,200 will be the immediate resistance zone for the bulls. If the market moves above 22,200, it could rally up to 22,250–22,300, Chouhan said. “On the flip side, if it falls below 22,000, traders may prefer to exit their long positions.”

A psychological level of 22,000 on the downside will act as immediate support, followed by 21,900, where the 100 weekly simple moving average is placed, according to Hrishikesh Yedve, research analyst at Asit C. Mehta Investment Intermediates Ltd.

He recommended to traders to follow a sell-on-rise strategy till the index maintains below 22,500.

“A breakdown below 22,000 could trigger further weakness toward 21,800 and 21,600,” Mandar Bhojane, research analyst at Choice Broking, said, adding that a breakout above 22,500 on the upside would indicate strength and might lead to a recovery.

The Bank Nifty formed a red candle on the daily chart, indicating weakness. However, the index has reversed from the previous demand zone of 47,840, which made it an essential support, while on the upside, 49,000 will remain a “difficult barrier,” according to Yedve.

He advised traders to actively monitor these levels for possible trading opportunities.

Market Recap

The benchmark equity indices ended Monday’s session in the red, with the media and oil and gas sectors declining the most.

The NSE Nifty 50 ended 5.4 points or 0.02%, lower at 22,119.30, while the BSE Sensex closed 112.16 points or 0.15%, down at 73,085.94.

HDFC Bank Ltd., Reliance Industries Ltd., Axis Bank Ltd., Bajaj Auto Ltd. and Coal India Ltd. weighed on the index the most. Shares of Infosys Ltd., Bharti Airtel Ltd., Larsen & Toubro Ltd. and Bharat Electronics Ltd. cushioned the fall in the Nifty the most.

Currency Market 

The domestic currency closed stronger by 15 paise at 87.36 against the US dollar amid faster quarterly economic growth, according to Bloomberg data.

FII/DII Activity

Foreign portfolio investors continued to remain net sellers of Indian equities for the eighth straight session on Monday, while domestic institutional investors stayed net buyers for the 18th straight session.

The FPIs offloaded stocks worth Rs 4,788.3 crore. The DIIs mopped up equities worth Rs 8,790.crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty March futures were down 0.06% to 22,259.80 at a premium of 140.5 points, with the open interest up 0.24%.

The open interest distribution for the Nifty 50 March 6 expiry series indicated most activity at 23,000 call strikes, and the 20,800 put strikes had the maximum open interest.

Major Stocks In News

  • Sudarshan Chemicals: Through its wholly owned subsidiary Sudarshan Europe BV, the company has completed its acquisition of Germany-based Heubach Group, gaining access to a diversified asset footprint across 19 international sites.

  • CEAT: The company has received the certificate of incorporation for its subsidiary in Sri Lanka, CEAT OHT Lanka Pvt Ltd.

  • Indian Energy Exchange: The company achieved an electricity trading volume of 9,622 MU in February 2025, marking a 9% YoY increase. Renewable Energy Certificate trading rose 167% YoY to 16.37 lakh. Market clearing price in the day-ahead market stood at Rs 4.38/unit, down 11% YoY.

  • Azad Engineering: The company closed its QIP and approved the allocation of 54.7 lakh shares at an issue price of Rs 1,280 per share, a 1.77% discount to the floor price.

  • Glenmark Pharma: The company has acquired and launched Acetylcysteine Injection, purchasing the ANDA from Aspen Pharma USA. The Acetadote Injection market achieved annual sales of approximately $15.2 million for the 12-month period ending January 2025, according to IQVIA sales data.

Global Cues 

Stocks in the Asia Pacific region slumped on Tuesday after Wall Street saw the worst session this year, triggered by US President Donald Trump escalating tariff tensions with key trading partners.

Japan’s Nikkei fell 1.59%, or 600 points, to 37,181, while Australia’s S&P ASX 200 was down 0.94% at 8,168 as of 6:55 a.m. The Canadian dollar and Mexican peso fell as the US tariffs are set to take effect Tuesday.

Future contracts in China and Hong Kong hinted at a negative start as Trump hiked tariffs on Beijing to 20%. The directive from the White House said Beijing had “not taken adequate steps” to address the flow of illicit fentanyl into the US. 

Meanwhile China’s commerce ministry “strongly” opposed the tariff measures and “hoped” that the US would handle issues objectively and rationally.

Stocks in China also gear up for a key test, as top officials will meet to discuss economic priorities, with hopes running high for further stimulus. President Xi Jinping and thousands of delegates including ministry chiefs will gather for the event, which starts from Wednesday. 

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.27% down at 106.45. The benchmark yield fell eight basis points to 4.12%.

Trump’s comments on tariffs accelerated a sell-off in US stocks, with Wall Street seeing the worst session this year. The S&P 500 tumbled 1.76%, while the Nasdaq 100 fell 2.64%. The Dow Jones Industrial Average declined by 1.48% on Monday.

Crude oil prices traded near the lowest in almost three months as OPEC+ signalled plans to revive halted production. The Brent crude was down 0.68% at $71.13 a barrel as of 7:19 a.m. IST, and the West Texas Intermediate was down 0.45% at $68.06.

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