March 5, 2025: A benchmark the Nifty ended a 10-day losing skid on Wednesday after value buying in utilities and power equities and a robust trend in international markets, while the BSE Sensex jumped 740 points. The 30-share BSE Sensex closed at 73,730.23, up 740.30 points, or 1.01 percent. The index reached an intra-day high of 73,933.80 after rising 943.87 points, or 1.29 percent. The broader Nifty of NSE recovered by 254.65 points, or 1.15 percent, to close at 22,337.30, ending its record 10-day downward run. At its peak of 22,394.90, it gained 312.25 points, or 1.41 percent, during the day. Adani Ports, Tata Steel, Power Grid, Mahindra & Mahindra, NTPC, Tech Mahindra, Tata Motors, ITC, Nestle India, HCL Technologies, Bharti Airtel, State Bank of India, Asian Paints, and Kotak Mahindra Bank were the companies that benefited from the Sensex pack.
According to Rohan Shah, Technical Analyst, Asit C Mehta Investment Interrmediates Ltd (ACMIIL), Indian equities stage a relief rally today after a record 10 consecutive negative closings and consecutive five months of decline. The index has multiple supports in the 21,800–22,000 zone, aligning with the 100-week EMA, an AB=CD Harmonic pattern, and a key demand zone. Additionally, Breadth and Momentum indicators have reached extreme oversold readings, reinforcing the rebound. In the near term, 21,800 remains a critical level, a breakdown below this could extend the decline towards 21,300. Conversely, if 21,800 is defended, the recovery could extend toward 22,800–23,000, which serves as the polarity resistance zone.
Furthermore, Hrishikesh Yedve, AVP Technical and Derivatives Research at ACMIIL said that the domestic benchmark index, Nifty, opened with gap down following weak global cues but buying interest on lower levels helped the index to settle the day on flat to negative note at 22,083. The volatility index, India VIX, rose by 0.49% to 13.83, indicating a mild increase in market volatility.
Technically, Nifty on a daily scale has formed a bullish belt hold candlestick pattern, suggesting strength. The 100-Weekly Simple Moving Average (100-WSMA) is placed near 21,900 levels, and a multiple support zone is placed near 21,800 levels. Till index holds the support of 21,800, a short-term pullback towards 22,300-22,500 could be possible. On the higher side, 22,500 will act as immediate resistance for the index. Thus, traders are advised to use this pullback for profit booking.
Bank Nifty opened with a gap down, experienced buying interest, and concluded the day on a positive note at 48,245. Technically, the Bank Nifty has formed a bullish candle on the daily chart, indicating strength. However, the index has defended previous demand zone of 47,840, making it an essential support, while on the upside, 49,000 will remain a challenging barrier for the index. Traders should actively monitor these levels for possible trading opportunities.
Market Closing Commentary
Nifty broke its 10-session losing streak, ending Wednesday’s trading up by 1.15% at 22,337.30. The benchmark indices saw a strong recovery from the oversold zone. The pullback was driven by several factors, including strength in Asian markets, bargain buying in oversold stocks, and value buying in blue-chip stocks. All 13 major sectoral indices closed in the green, with Metals, Information Technology, and Automobile stocks leading the rally. The BSE Midcap and BSE Smallcap indices surged by 2.66% and 2.8%, respectively.
Nifty Outlook
Index formed a strong bull candle with a higher high and higher low, indicating buying demand emerging for the second session from the 22,000 levels. We anticipate the current pullback to extend toward the 22,500 level, which corresponds to the gap down area from February 28, 2025. Overall, the index is expected to consolidate within the range of 21,700 to 22,500 in the upcoming sessions. Key support levels are identified between 22,000- 21,700, as this range. For a reversal of the short-term corrective trend, the index needs to consistently form higher highs and higher lows.
Bank nifty Outlook
Bank Nifty formed a second consecutive bull candle with a higher high and higher low highlighting buying demand emerging from the lower band of the last 8 weeks range placed around 48,000-47,800. We expect the index to trade in the range of 47,800-49,000 in the coming sessions. A breach below the lower band of the range will lead to extended decline towards 47,000 levels in the coming sessions. While holding above the support area of will lead to pullback towards the 49,000 levels. Bank Nifty has been consolidating in the broad range of 47,800-50,500 in the last 8 weeks. A breakout or breakdown from the range will signal the next directional move..
Bajaj Broking Market Market Commentary: Nifty Gains Amid Positive Global Cues
Despite global uncertainty and negative sentiment, Nifty opened flat at 22,073. From the day's low of 22,067, the index gained momentum, surging to an intraday high of 22,394. The rally was largely driven by strength in sectors such as Metals, PSU Banks, Energy, Automobiles, IT, and Oil & Gas. While most sectors traded in the green, these stood out as the top performers.
A key catalyst behind today’s market surge was a statement from the US Commerce Secretary, indicating that the Trump administration might ease tariffs that had previously triggered a global market selloff. The US could announce a plan to gradually scale back tariffs on Mexican and Canadian goods under NAFTA, ensuring flexibility in trade negotiations.
Additionally, positive cues from Asian markets fueled investor sentiment. Hong Kong’s Hang Seng Index surged nearly 2 percent as China pledged fresh stimulus measures to offset trade tensions with the US. Japan’s Nikkei also traded higher, further boosting confidence in global markets.
Technical Outlook on Nifty
Nifty has demonstrated a strong upmove from 22,000 to 22,394, and this momentum is likely to continue toward the key resistance level of 22,500. This level holds significance as both a technical and psychological resistance. A decisive breakout above 22,500 could trigger further upside toward 22,800.
However, on the downside, if Nifty slips below 22,300, it may retrace to test support levels at 22,000 and 21,800, respectively. Given these factors, Nifty remains a conditional play, with its direction dependent on price action around these key levels.
