Trade Setup For March 27: Nifty 50 Faces Key Support At 23,300 Levels
The weak sentiments for Nifty 50 will likely continue if it trades below 23,600 levels, an analyst said.
The NSE Nifty 50, which slid on Wednesday after seven days of rise, faces key support at 23,300 levels, according to stock market analysts.
The support for the index is placed at 23,300 but a fall below these levels can question the recent rally from 21,964 onwards, said Rupak De, senior technical analyst at LKP Securities.
The benchmark index has fallen below its near-term moving average, indicating a bearish trend, the analyst added.
The resistance is placed at 23,550 levels, above which the sentiment might improve, he further said.
The weak sentiments for Nifty 50 will likely continue if it trades below 23,600, according to Shrikant Chouhan, head of equity research at Kotak Securities.
If the market declines, then the index may revisit the levels of 23,400–23,330 while a move above 23,600 could shift the sentiment positively, potentially driving it upwards to 23,700–23,760, he said.
Bank Nifty, also a keenly tracked index, has formed a red candle on daily charts, indicating weakness, said Hrishikesh Yedve, assistant vice president for technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.
The key support for the index is placed near 50,990 level, whereas the 51,880-52,000 serves as a strong resistance zone, he added.
Market Recap
India's benchmark equity indices snapped the longest gaining streak in nearly two months on Wednesday and also posted the worst intraday fall in nearly a month.
The Nifty 50 ended 181.8 points or 0.77% lower at 23,486.85, while the BSE Sensex closed 728.69 points or 0.93% lower at 77,288.5.
FII/DII Activity
Foreign portfolio investors remained net buyers for the fifth straight session on Wednesday as they bought equities worth Rs 2,240.55 crore.
Domestic institutional investors remained net sellers for the second session of Indian equities, off-loading equities worth Rs 696.37 crore, according to provisional data from the National Stock Exchange.
F&O Cues
The Nifty March futures were down 0.81% to 23,521.90 at a premium of 35.05 points, with the open interest down 39.33%.
The open interest distribution for the Nifty 50 March 27 expiry series indicated the most activity at 24,000 call strikes, and the 23,000 put strikes had the maximum open interest.
Major Stocks In News
BSE: Stock exchange firm will consider issuing bonus shares during its board meeting on March 30.
Vedanta: The company appointed Tata Steel veteran Rajiv Kumar as the chief executive officer of its aluminium business.
Wipro: The company has won a 10-year strategic deal worth 500 million pounds or over Rs 5,500 crore with Phoenix Group, the UK's largest long-term savings and retirement business.
Global Cues
Asian equities slipped at Thursday's open, as US President Donald Trump's latest trade comments sparked caution, leading investors to shun riskier assets.
Japanese and Australian indices fell, while US stock futures also declined in early Asian trading.
The S&P 500 and Nasdaq 100 plummeted the most in two weeks on Wednesday.
The Nikkei was down 1.17%, S&P ASX 200 fell 0.56%, while the Hang Seng was up 0.40%. The CSI 300 declined 0.13%
The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — fell to 104.45.
Crude oil was up on Tuesday, with the Brent crude rising 0.07% at $73.84 a barrel as of 07:22 a.m. IST.
Currency Update
The Indian rupee gained against the US dollar, closing five paise higher at 85.71 against the greenback, according to Bloomberg data.
