Indian stock markets are expected to open lower on Friday, March 7, as global markets showed signs of weakness overnight. The trends on GIFT Nifty, an early indicator of the Nifty 50’s movement, suggest a negative start, with GIFT Nifty trading at around 22,555, marking a discount of nearly 65 points from the previous close of Nifty futures.
On Thursday,
the domestic equity market saw continued strength, with the Sensex surging 609.86 points (0.83%) to close at 74,340.09, while the Nifty 50 gained 207.40 points (0.93%) to settle at 22,544.70. The Nifty 50 formed a small bull candle on the daily chart, indicating that the index is showing signs of upward momentum.However, technical analysts suggest a cautious approach. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that the Nifty 50 surpassed the 22,500 resistance level, which had previously acted as an obstacle. This is seen as a positive sign, but caution is advised due to the formation of a "negative hanging man" candlestick pattern, suggesting potential volatility. Shetti further pointed out that the next key resistance levels for the Nifty 50 are around 22,750-22,800, with immediate support at 22,250.
In the derivatives market, Nifty open interest (OI) data shows significant call OI at the 22,600 strike and put OI at 22,500, implying that the index could face resistance near the 22,600 level. A sustained move above this threshold will be crucial for determining the next direction for the market.
Rupak De, Senior Technical Analyst at LKP Securities, highlighted the recovery in the Relative Strength Index (RSI), which is currently in a bullish crossover, supporting the short-term upside momentum. He predicts that the Nifty 50 could target levels around 23,750–23,800, but cautioned that a fall below 22,300 could alter the bullish sentiment.
