Nifty's immediate support is placed at 22,315 levels, according to analysts, after the market ended on a cautious note on Tuesday, with more stocks declining than advancing.
The Indian equity markets opened with a gap down as US stock markets experienced significant declines, primarily due to escalating recession fears and ongoing trade tensions. The administration's aggressive tariff policies, particularly the trade war with Canada, have heightened economic uncertainty.
Shrikant Chouhan, head of equity research at Kotak Securities, noted that as long as the market is trading above 22,300, the short-term outlook remains bullish. On the higher side, it could retest the levels of 22,600-22,650.
"Conversely, if it falls below 22,300, the sentiment could change. Below this level, traders may prefer to exit their long positions," Chouhan said.
After the negative chart pattern, like lower tops and bottoms, over the last few weeks, Nifty is now in the process of forming a new higher bottom at 22,300 levels, as per Nagaraj Shetti, senior technical research analyst at HDFC Securities.
"A decisive upmove above the hurdle of 22,700-22,800 levels could confirm the bullish shift and that could open more upside in the near term. Immediate support is placed at 22,315 levels," Shetti said.
Bank Nifty settled on a negative note at 47,854. Technically, it formed a small red candle on the daily scale and closed just above multiple support levels at 47,840, according to Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd.
Yedve noted that if the index manages to hold 47,840, a relief rally could be possible in Bank Nifty. However, a sustained break below 47,840 could lead to further weakness. "Traders should monitor these levels for potential trading opportunities," he said.
FII/DII Activity
Foreign portfolio investors were net sellers of Indian equities once again, for the 14th straight session on Tuesday, while domestic institutional investors remained net buyers for the 24th straight session.
FPIs offloaded stocks worth Rs 2,823.8 crore and domestic institutional investors net bought equities worth Rs 2,001.8 crore, according to provisional data from the National Stock Exchange.
F&O Action
The Nifty March futures were up 0.33% to 22,564 at a premium of 67 points, with the open interest down 0.55%.
The open interest distribution for the Nifty 50 March 13 expiry series indicated most activity at 23,000 call strikes, and the 22,200 put strikes had the maximum open interest.
Market Recap
The benchmark equity indices pared early losses to end Tuesday's session mixed as ICICI Bank Ltd. and Bharti Airtel Ltd. led the recovery.
The NSE Nifty 50 ended 37.60 points or 0.17% higher at 22,497.90, while the BSE Sensex closed 12.85 points or 0.02% down at 74,102.32.
Stocks in the Asia Pacific region extended their fall for the third consecutive session, taking a cue from the meltdown in US stocks amid fears that tariffs and government firings will stall economic growth in the US.
Major Stocks In News
Bharti Airtel: The company has signed an agreement with SpaceX to bring Starlink’s high-speed satellite-based internet to India.
Tata Consultancy Services: IT major to acquire commercial property developer Darshita Southern India Happy Homes Pvt. Ltd. for Rs 2,250 crore.
Waaree Renewable Technologies: The company which is part of a three-member consortium has bagged a solar power project worth Rs 740.06 crore.
Godrej Agrovet: The company to acquire 48.06% equity stake in Creamline Dairy Products for Rs 930 crore.
RVNL: The company emerged a lowest bidder for Rs 554.64 crore from NHAI Project. The order is for the construction of 6 lane access-controlled connectivity to Visakhapatnam port Road.
Global Cues
Stocks in the Asia Pacific region were mixed and traded in a tight range on Wednesday after US President Donald Trump downplayed fears of a recession, helping US stocks post a late-day recovery amid a volatile session.
“I don’t see it at all. I think this country’s going to boom,” Trump said at the White House on Tuesday. Markets “are going to go up and they’re going to go down. But you know what, we have to rebuild our country", he added. The White House has also confirmed that it will go ahead with the 25% tariffs on steel and aluminum on Canada and other countries.
South Korea's Kospi rose 1.37%, or 34.67 points to 2,572.27, while Australia's S&P ASX 200 was down 1.59% at 7,764.50, hovering near a correction as of 7:12 a.m. Markets in Japan and Hong Kong rose on Wednesday, while the benchmark indices in China were also in the green.
This comes after S&P 500 fell 0.76% on Tuesday, this is 9.3% lower than its all-time high while the Nasdaq Composite slipped 0.18%. The Dow Jones Industrial Average fell over 1% on Tuesday.
Among important events today Canada will make its rate decision while US will announce its CPI data.
The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — rose over 0.1%. The benchmark yield fell one basis points to 4.27%.
Crude oil rose on Wednesday, snapping its losing streak with the Brent crude rising 0.50% at $69.91 a barrel as of 7:15 a.m. IST, and the West Texas Intermediate was up 0.56% at $66.62.
Money Market
The Indian rupee ended stronger against the greenback on Tuesday as the US dollar index fell to the lowest level in six months.
The local currency appreciated 12 paise to close at 87.21 against the dollar, according to Bloomberg data. It ended at 87.33 on Monday.
The Indian unit opened four paise lower at 87.37 as traders remained cautious on concerns over tariff outlook. Intraday, the rupee rose 0.19% to the day's high of 87.17 against the dollar.
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