NIFTY OUTLOOK FOR TOMORROW MARCH 2025

 Equity Market Performance: Indian equity indices ended on a negative note on March 4, with the Nifty closing below the 22,100 mark. The market witnessed a recovery from intraday lows but remained in negative territory due to adverse global cues stemming from escalating global trade tensions.

At close:

• Sensex: Down 96.01 points (-0.13%) at 72,989.93

• Nifty 50: Down 36.65 points (-0.17%) at 22,082.65

Despite the weak sentiment, the broader market outperformed, driven by value buying in small-cap stocks. The BSE Midcap index ended flat, while the Smallcap index rose by 1.3%.

Market Trends:

• The market remained lackluster and extended its ongoing corrective phase.

• Nifty, after an initial dip, gradually recovered and traded in a range-bound manner.

• Sectoral trends were mixed: Energy, metal, and banking stocks gained, while auto and IT stocks underperformed.

• A rebound in small-cap stocks improved market breadth, though mid-caps closed on a flat note.

Key Support & Resistance Levels:

• Support: 21,800 - 22,000 zone

• Resistance: 22,260

• A decisive fall below 21,800 could shift the market sentiment negatively.

• Formation of a Bullish Engulfing candlestick pattern in Mid and Smallcap indices suggests a potential trend reversal.

Sectoral Performance:

• Top Gainers: Media, PSU Banks, Banking, Capital Goods, Oil & Gas (up 0.5% - 2%)

• Top Losers: Auto, IT, Telecom, FMCG (down 0.4% - 1%)

Top Gainers & Losers:

• Gainers: Bharat Electronics, SBI, BPCL, Shriram Finance, Adani Enterprises

• Losers: Bajaj Auto, Hero MotoCorp, Bajaj Finserv, Nestle, Eicher Motors

Rupee & Global Market Impact:

• The Indian Rupee traded flat with a negative bias due to weak domestic market sentiment and continued FII outflows.

• Weakness in the US Dollar and a sharp fall in crude oil prices cushioned the downside for the Rupee.

• USDINR spot price is expected to trade in the range of Rs 87.10 - Rs 87.60.

• ISM manufacturing PMI in the US fell to 50.3 in February from 50.6 in January, missing expectations of 50.9, adding to global economic concerns.

Market Outlook: While global trade tensions and FII outflows continue to weigh on sentiment, selective buying in key sectors is limiting the downside. The short-term outlook remains cautious, with 22,000 acting as a key support level. A sustained break below 21,800 could indicate further downside, while any recovery beyond 22,260 may trigger a positive shift in momentum.