On March 6, Indian equity indices ended on a strong note, with the Nifty closing above the 22,500 mark. The Sensex gained 609.86 points (0.83%) to settle at 74,340.09, while the Nifty rose 207.40 points (0.93%) to close at 22,544.70.
Markets extended their rebound, gaining nearly a percent on the weekly expiry day, driven by strong cues. Nifty witnessed a dip in the early session but later saw a notable recovery in heavyweight stocks, closing near the day's high at 22,528.15.
Sectoral Performance
Gainers: Metal, Energy, and Pharma led the gains.
Lagging Sectors: Realty and IT remained subdued.
Broader Market: Mixed performance with Smallcap stocks outperforming, advancing by over 1%, while Midcaps underperformed.
Key Market Drivers
Crude Oil & Dollar Cool-Off: The recent correction in crude oil prices and a weakening dollar improved glob
al sentiment.
Global Developments: Trump's softened tariff stance on automakers from Canada & Mexico and stimulus measures from China boosted optimism in metal and energy sectors.
Stock-Specific Movements: Strength in heavyweight banking and consumption stocks fueled gains.
FII Outflows & RBI Liquidity Injection: While FIIs showed selling pressure, RBI’s liquidity injection announcement supported domestic markets.
Technical Analysis
Resistance Levels: The next major resistance levels for Nifty are 22,668-22,720 and 22,800.
Support Levels: Immediate support is placed at 22,240, with the 22,250-22,400 zone acting as a critical range.
Candlestick Pattern: A bullish candle was formed on the daily chart, indicating continued positive momentum.
RSI Analysis: The RSI is recovering from historical lows and shows a bullish crossover, suggesting further upside potential.
Bank Nifty Performance
Bank Nifty opened with a gap-up but faced profit booking in the first half. However, it recovered in the second half, closing at 48,628.
Resistance Level: 48,660 remains a key hurdle; a breakout above this level could push the index towards 49,000.
Support Level: 47,840 is a strong downside support level.
Currency Market Update
The Indian Rupee lost its initial gains and fell against the US Dollar due to selling pressure from FIIs.
The Rupee opened firm following RBI’s decision to inject Rs 1.9 trillion liquidity through OMOs.
The US Dollar fell to a four-month low as the US delayed implementing higher tariffs on imports from Canada & Mexico.
The USDINR spot price is expected to trade within the Rs 86.80 to Rs 87.25 range.
Top Gainers & Losers
Top Gainers: Asian Paints, Coal India, Hindalco Industries, BPCL, NTPC.
Top Losers: Tech Mahindra, Trent, Bharat Electronics, HDFC Life, Kotak Mahindra Bank.
Outlook & Recommendations
Nifty is expected to face stiff resistance at 22,720 and 22,800, while traders should watch for support around 22,240-22,320.
Investors should remain cautious as Trump’s tariff decisions and FII outflows may introduce volatility.
Stock selection remains key in the current market scenario, with a focus on fundamentally strong businesses.
Short-Term View: The market sentiment favors the bulls, but a sustained move above 22,800 is needed for further upside towards 23,750–23,800.
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