Bajaj Broking Market Closing Commentary

Nifty started the session on a positive note but struggled to sustain at higher levels, giving up its gains and reaching an intraday low of 22,329 in mid-session. However, buying interest emerged near yesterday's low, allowing the index to recover most of the losses and close marginally lower by 0.12% at 22,470.50. The broader market showed a corrective bias, with the Nifty midcap and small-cap indices ending the session down by 0.6% and 0.3%, respectively. Key economic indicators, including CPI data for the US and India, along with India’s IIP data, are set to be released today after the market closes. Among sectoral indices, Bank, Auto, Pharma, and Oil & Gas sectors saw gains of around 0.5%, while IT, Media, and Realty sectors closed lower, with declines ranging from 3% to 1.5%.

Nifty Outlook

Benchmark indices continued to trade within a range marked by high volatility, closing slightly lower on Wednesday. The index formed a small bear candle with a long lower shadow, indicating buying interest for the second consecutive session near the 50% retracement level of the previous upward move (21965-22676). Going ahead, sustained strength could signal an upward move towards the 22,700 and 23,000 levels in the coming weeks, with immediate support at the 22,300-22,200 range. We believe that any dips toward this support zone should be viewed as a buying opportunity in the upcoming sessions.

Bank Nifty Outlook

Bank Nifty ended its three-session decline, closing 0.3% higher on Wednesday. The index formed a bull candle with a significant upper shadow, indicating consolidation near the lower band of the consolidation range observed over the past nine weeks. The index has been making lower highs and lower lows on the weekly chart for the past four weeks. To reverse the trend, it must break this pattern. Failing to do so will likely sustain a bearish outlook. The index is currently near the lower end of the 47,700-49,000-consolidation range. A close below the lower band of the range will lead to an acceleration of decline towards 47,000 levels in coming weeks. While holding above the same can lead to a pullback towards 49,000 levels.

Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity – part of Ashika Group

Despite negative cues from global markets, the Nifty opened flat at 22,536. The index registered its intraday high of 22,577 early in the session before witnessing a sharp decline, hitting an intraday low of 22,329. However, in the second half, Nifty staged a strong recovery, gaining approximately 140 points. The initial selloff was driven by concerns over global trade policies following President Trump's warning about potentially doubling tariffs on Canadian steel and aluminum, which weighed on investor sentiment. Sectorally, weakness was observed in IT, Realty, and Metals, while strength was seen in Private Banks, Automobiles, and Financial Services. The key contributors to Nifty’s gains included HDFC Bank, Kotak Bank, Reliance, ITC, and Tata Motors, whereas major drags came from Infosys, TCS, Bharti Airtel, Axis Bank, and Tech Mahindra. Meanwhile, investors remained focused on India’s February inflation data, set to be released later today, which could influence market direction in the coming sessions. Through this certification, Finance Outlook India extends its recognition, gratitude, and admiration towards driving the needed innovation in the realm of trading.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates

The domestic benchmark index, Nifty, opened on a positive note on Wednesday, but following initial volatility, the index experienced selling pressure and settled on a negative one at 22,471. The volatility index, India VIX, cooled off by 2.70% to 13.69, indicating a drop in market volatility.

Technically, on the daily chart, Nifty formed a red candle with a long lower shadow, indicating buying interest at lower levels. However, index is still facing resistance near the bearish gap of 22,668-22,720, suggesting that 22,720 will act as an immediate hurdle, followed by the previous breakdown point of 22,800. On the downside, 22,300 will serve as a key support level in the short term. Until the index sustains below the 22,800 level, traders are advised to buy near support and book profits around the mentioned resistance zone. Traders should monitor these levels for potential trading opportunities.

The Bank Nifty index opened on a positive note, maintained buying interest throughout the day, and settled higher at 48,057. Technically, the Bank Nifty index formed a green candle on the daily scale and defended the key support level of 47,840. As long as the index holds above 47,840, a relief rally remains possible. On the upside, 48,800 will act as a key hurdle for Bank Nifty. However, a sustained break below 47,840 could lead to further weakness.