A short-term pullback formation towards 22,300–22,500 can be possible as long as the NSE Nifty 50 has its multiple support zones placed near 21,800 systems, according to an analyst.

Technically, it has formed a bullish belt-hold candle on the daily charts. The 100-meekly simple moving average is placed near 21,900 levels, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

On the upside, 22,500 will be the immediate resistance zone for the bulls, he said. “Traders are advised to use this pullback for profit booking.”

The Bank Nifty has formed a bullish candle on the daily chart, indicating strength. However, the index has defended from the previous demand zone of 47,840, making it an essential support, while on the upside, 49,000 will remain a “challenging barrier”. Yedve said.

Market Recap

The benchmark equity indices ended Tuesday’s session marking the longest losing streak in 29 years. The auto, IT and FMCG sectors declined the most.

The NSE Nifty 50 ended 36.65 points or 0.17% lower at 22,082.65, while the BSE Sensex closed 96.01 points or 0.13% down at 72,989.93.

FII/DII Activity

Foreign portfolio investors continued to remain net sellers of Indian equities for the ninth straight session on Monday, while domestic institutional investors stayed net buyers for the 19th straight session.

The FPIs offloaded stocks worth Rs 3,405.8 crore. The DIIs mopped up equities worth Rs 4,851.4 crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty March futures were down 0.34% to 22,191.05 at a premium of  108.4 points, with the open interest up 1.39%.

The open interest distribution for the Nifty 50 March 6 expiry series indicated most activity at 22,500 call strikes, and the 21,500 put strikes having the maximum open interest.

Major Stocks In The News

  • Coforge: The firm signed a notable 13-year partnership contract with Sabre Corporation worth $1.56 billion in order to boost product innovation and delivery.

  • Adani Wilmar: Adani Wilmar inked a definitive agreement with GD Foods Manufacturing (India) Pvt. to acquire the owner of household cooking brand Tops. The acquisition will be executed in multiple tranches, with 80% of the shares to be acquired in the first tranche and the rest scheduled to be acquired over the coming three years.

  • Power Grid Corporation Of India: The company was declared successful bidder for three Inter-State Transmission System projects under the Build, Own Operate, and Transfer basis and for the transmission system For Rajasthan REZ Ph-V Project the Kurnool-IV REZ Phase-I Transmission Project and the augmentation Of transportation capacity At Banaskantha Project.

  • GE Vernova T&D India: The firm received orders worth Rs 500-crore order from Power Grid for the supply and installation of transformers and reactors according to a bulk procurement deal. The contract, involves 765kV class transformers and reactors of various capacities, and is planned to be executed within 36 months.

  • RVNL: The firm received a letter of award for Rs 729.82 crore from Himachal Pradesh Electricity Body.

Global Cues 

Stocks in the Asia Pacific region traded mixed in early trade on Wednesday, on the tariff relief signal after President Donald Trump sparked a global selloff.

Japan’s Nikkei rose 0.04%, or 17 points to 37,347, while Australia’s S&P ASX 200 was down 1.03% at 8,113 as of 6:45 a.m. Stocks on Wall Street recovered after erasing all gains made this year as US Commerce Secretary Howard Lutnick signalled a tariff compromise with Canada and Mexico.

Canada and China responded to Trump with retaliatory measures after the US decided to proceed with levies against Canada and Mexico on Tuesday. Meanwhile, China’s commerce ministry “strongly” opposed the tariff measures and “hoped” that the US would handle issues objectively and rationally.

Future contracts in China pointed at a flat start and will remain in focus as the country maintains its economic growth goal at about 5% for 2025 — the third consecutive year — raising expectations for officials to unleash more stimulus. China also set this year’s fiscal deficit target to around 4% of gross domestic product, according to the report seen by Bloomberg.

The economic forecast by Beijing comes as President Xi Jinping and thousands of delegates including ministry chiefs will gather to discuss economic priorities, with hopes running high for further stimulus. 

Wall Street saw a volatile session but recovered its losses in late hours. The S&P 500 tumbled 1.22%, while the Nasdaq 100 fell 0.35%. The Dow Jones Industrial Average declined by 1.55% on Tuesday.

Crude oil prices continued to trade lower as OPEC+ signalled plans to revive halted production along with hopes of ease in tariff measures. The Brent crude was down 0.23% at $70.88 a barrel as of 7:00 a.m. IST, and the West Texas Intermediate was down 0.72% at $67.77.

Forex Market

The Indian currency closed stronger by nine paise at 87.27 against the US dollar amid increasing global trade tensions and continued exiting by foreign institutional investors according to Bloomberg data.

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