Stock Market Update: Nifty 50, Sensex to Open Flat on March 12
The Indian stock market is expected to experience a dull start on Tuesday, March 12, according to trends on the Gift Nifty. The Gift Nifty was trading at about 22,550, which is indicating a discount of about nearly 14 points compared to the previous close of the Nifty futures.
Market Recap
On Monday, March 11, the local equity indices closed the session nearly flat. The benchmark Nifty 50 closed 37.60 points higher at 22,497.90, while the Sensex fell 0.02% to close at 74,102.32. The indices bounced back from intraday losses but were range-bound during the session.
Sensex Outlook
Sensex saw a small bounce but closed just a shade lower on Tuesday. Experts opine that as long as the Sensex remains above 73,700, the short-term trend is also good. The upside resistance is at 74,500–74,700 and going below 73,700 would result in more downside pressure. Traders are cautioned to be watchful and close long positions if this level is crossed.
Nifty 50 Outlook
The Nifty 50 had created a bullish Marubozu candlestick pattern on the daily chart, indicating possible strength. Experts point out that the near-term support is located at 22,400, then 22,300, with resistance zones at 22,660–22,700. A continuous rally past 22,700 may take the index up to the 23,000 level.
Market analysts suggest that the RSI indicator is still in a positive trend, and the index has continued to stay above the 50-day EMA on the hourly chart, which also confirms the short-term bullish outlook.
Bank Nifty Outlook
Bank Nifty index dipped by 362.85 points, or 0.75%, on Tuesday to close at 47,853.95, registering a Doji pattern in the daily charts. The index broke the swing low touched by it before, falling as low as 47,702.90 on intraday levels, primarily because of a dip in IndusInd Bank's share.
Bank Nifty has declined below the 9 EMA, and RSI is at 36, which shows weak momentum. Until the index crosses the 48,500 mark on a closing basis, the short-term trend can remain bearish. Important support levels are in place at 47,450 and 47,200.
Derivative Data and Key Levels
Nifty Open Interest (OI) Data: Max OI on call side at 22,600 and 22,700, which is resistance levels. Put side OI is heavily loaded at 22,400, which is a good support.
Immediate Levels to Watch:
- Nifty 50: Support at 22,300-22,400, Resistance at 22,560-22,685
- Sensex: Support at 73,700, Resistance at 74,500-74,700
- Bank Nifty: Support at 47,450-47,200, Resistance at 48,500
Market Strategy
Technical analysts advise a careful approach in the present range-bound market. Though indicators indicate possible upside move, failure to hold above important support levels may lead to further weakness. Investors are recommended to adopt a 'sell on rise' strategy in the present volatility and monitor key resistance and support points for intraday trading opportunities.
Disclaimer: The opinions expressed herein are those of individual market analysts and should not be taken as investment advice. Investors are advised to seek the services of certified experts before making any trading decisions.
