Indian Stock Market Set for Weak Opening Amid Global
Concerns
The Indian equity market is expected to open lower on
Wednesday, March 27, as poor global cues dampen investor sentiment. The effect
of U.S. President Donald Trump's move to impose a 25% tariff on car imports has
resulted in a risk-off strategy in equity markets globally. Trends on Gift
Nifty show a subdued start, trading at the 23,500 level, down close to 22
points from the Nifty futures' last close.
Market Recap: March 26
The local share market saw a precipitous fall on Tuesday,
snapping a seven-day winning run. The Sensex plunged 728.69 points (0.93%) to
settle at 77,288.50, while the Nifty 50 dipped 181.80 points (0.77%) to close
at 23,486.85. The fall was primarily due to profit booking after a sustained
rally.
Nifty 50 Outlook
Nifty Open Interest (OI) data shows solid resistance at
strike prices 23,600 and 23,700, while support is shown at the level of 23,300,
according to Hardik Matalia, Derivative Analyst at Choice Broking.
Nagaraj Shetti, HDFC Securities Senior Technical Research Analyst, pointed out that a long bearish candle on the daily chart indicates the start of a short-term correction. But he stressed that the overall trend is still intact, and the index will find support at 23,400 - 23,200 levels before making another attempt to move higher towards the 23,800 level.
Bajaj Broking Research also sees Nifty to consolidate
between 23,850 - 23,200 levels as the market absorbs the recent gains. It
advises that this correction offers a chance to buy quality stocks for a move
towards 24,100 - 24,200 levels.
Stock market analyst VLA Ambala pointed out that Nifty's
creation of the Evening Star pattern on the daily chart signals selling
pressure at higher levels. Important support levels for the day are set at
23,320, 23,250, and 23,195, while resistance is at 23,570, 23,650, and 23,740.
Bank Nifty Outlook
Bank Nifty also fell to profit booking, down 398.95
points (0.77%) to close at 51,209. A bearish candle formation on the daily
chart indicates negative pressure.
Technical analysts point out that the 200-Day Simple
Moving Average (200-DSMA) at 50,990 is a key support level, followed by 50,640.
On the higher side, stiff resistance would be at 51,880 and 52,000.
Bajaj Broking Research anticipates Bank Nifty to
consolidate in the range of 50,500 - 52,000 before resuming its uptrend towards
53,000 in the weeks ahead. It suggests accumulating quality banking stocks in
the current correction.
Market Strategy
Though the short-term trend indicates consolidation,
analysts opine that long-term prospects are good. The ongoing correction may
offer chances for investors to invest in quality stocks in a phased manner.
As market volatility continues amidst global uncertainty,
traders are cautioned to closely watch key support and resistance levels and be
on guard before the monthly expiry session.
Disclaimer: The above opinions are based on the views of
market analysts and do not qualify as investment advice. Investors are
encouraged to consult certified financial experts prior to making any trading
decision.
