The Nifty 50 has formed a red candle on the daily scale, which indicates selling pressure at higher levels, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.
"The 21-Days Simple Moving Average is placed at 23,270, making the 23,270–23,300 zone a strong hurdle," Yedve said.
On the downside, Yedve said that 22,780 will act as a key support level. He advised traders to adopt a buy-on-dips strategy as long as the index holds 22,780.
The Bank Nifty had formed a small red candle with a long upper shadow, on technical levels, Yedve said. "On the downside, 48,730 will act as immediate support, while 50,000 remains a key resistance," Yedve said.
He recommended to traders to closely monitor the aforementioned levels for potential trading opportunities.
Market Recap
After erasing earlier gains, the NSE Nifty 50 and BSE Sensex ended in losses for the seventh session in a row. Infosys Ltd. and HDFC Bank Ltd. share prices weighed on the Nifty 50 the most.
The Nifty 50 ended 13.85 points or 0.06% down at 23,031.40, and the Sensex closed 32.11 points or 0.04% lower at 76,138.97.
In the first half of trade, the Nifty 50 rose 0.83% to 23,235.50, and the Sensex gained 0.78% to 76,764.53.
F&O Cues
The Nifty February futures were down 0.13% to 23,107 at a premium of 76 points, with the open interest down by 1.7%.
The open interest distribution for the Nifty 50 Feb. 13 expiry series indicated most activity at 24,000 call strikes, with the 22,000 put strikes having maximum open interest.
FII/DII Activity
Foreign portfolio investors stayed net sellers of Indian equities for the seventh straight session on Thursday as they offloaded stocks worth approximately Rs 2,789.9 crore.
Domestic institutional investors stayed net buyers for the seventh straight session as they mopped up equities worth Rs 2,934.5 crore, according to provisional data from the National Stock Exchange.
Major Stocks In News
Bank of Baroda: The lender has approved raising up to Rs 8,500 crore via qualified institutional placements.
Mahindra Lifespace Developers: The board has approved raising up to Rs 1,500 crore through a rights issue.
Manappuram Finance: The company has approved raising up to $2 billion under the global medium-term note programme.
Global Cues
Stocks in the Asia-Pacific region traded mixed on Friday, as traders digested the latest reciprocal US tariffs on nearly every country, which were proposed to be imposed as soon as April of this year.
Japan's Nikkei was down 62 points, or 0.16% at 39,398, while South Korea's Kospi rose 0.3%, or 8 points to 2,592 as of 6:30 a.m. Future contracts in China and Hong Kong hinted at a positive stock start.
President Donald Trump ordered his administration to consider imposing reciprocal tariffs on numerous trading partners, adding pressures to a potential trade war. Reciprocal tariffs affect nearly every country, with India, Japan, and the EU being hit the most.
Howard Lutnick, Trump’s nominee to lead the Commerce Department, told reporters all studies should be complete by April 1 and that Trump could act immediately afterward. Trump also proposed to impose 100% tariffs on BRICS nations, if any attempt were made to de-dollarise the currency.
Treasuries in Asia were trading flat in early trade, after a rally in the previous session. The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — was 0.2% down at 107.09.
Meanwhile, Indian Prime Minister Narendra Modi and Trump announced a framework to strengthen both sides economically and vowed to deepen every aspect of the partnership.
Stocks on Wall Street inched closer to their all-time highs on Thursday. The S&P 500 and The Dow Jones Industrial Average advanced 1.04% and 0.77%, respectively. The tech-heavy Nasdaq Composite rose 1.50%.
Crude oil prices wavered after Trump's latest reciprocal tariff news. The Brent crude fell 0.21% at $75.02 a barrel as of 6:45 a.m. IST, and the West Texas Intermediate was down 0.01% at $71.28.
Currency Update
The Indian rupee closed flat at 86.89 against the US dollar on Thursday, mirroring its closing value from the previous day.
The local currency had opened stronger, appreciating by 9 paise to start at 86.80, but ultimately ended the day unchanged, according to Bloomberg data.
Also Read: Rupee Ends Flat Against US Dollar
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