Despite selling pressure, Indian markets ended the day flat on February 25 and outperformed Asian indices. Metal stocks were impacted by restrictions on Chinese investment, which raised questions about demand. Investor confidence has been eroded by Trump's tariffs, which has led to cautious market sentiment and constrained trading ranges.
The Nifty saw significant gains from M&M, Bharti Airtel, Bajaj Finance, Maruti Suzuki, and Nestle, while Hindalco, Dr. Reddy's Labs, Sun Pharma, Hero MotoCorp, and Trent saw losses. IT, metal, oil and gas, energy, capital goods, PSU Bank, and real estate all saw 0.5–1 percent declines on the sectoral front, while telecom, FMCG, auto, and consumer durables all saw 0.5 percent increases.
Furthermore, the BSE Sensex closed up 147.71 points, or 0.20 percent, at 74,602.12. The index reached an intraday high of 74,785.08. NSE Nifty50 closed at 22,547.55, down 5.8 points (0.03 percent). The index reached an intraday high of 22,625.30 and a low of 22,513.9. CLN Energy shares, which were recently listed, were in high demand during Tuesday's trading. The electric vehicle components maker's shares rose more than 6.26 percent to an intra-day high of Rs 306.
Market Closing Commentary
The markets wrapped up the trading session on a subdued note, closing marginally lower as lackluster sentiment prevailed throughout the day. The benchmark index slipped 5.80 points to settle at 22,547.55. Sectorally, Media and Auto emerged as the top gainers, while Metals and Realty witnessed notable profit booking, each shedding over 1% to lead the decline. Broader markets underperformed the frontline index, with Mid and Small-caps ending in negative territory. Market participants maintained a cautious stance as heightened global uncertainties, coupled with relentless FII selling, dampened sentiment and kept trading momentum tepid ahead of the upcoming derivatives expiry.
Nifty Outlook
Technically, the market continues to exhibit a bearish undertone, with Nifty50 consolidating within its established range, as key support and resistance levels remain intact at 22,400 and 22,800, respectively, signaling the absence of a decisive breakout
Bank Nifty Outlook
Bank Nifty remained under sideways to bearish pressure for most of the session ultimately settling at 48,608.35, down by 0.09%. Moving forward, immediate support levels are still positioned at 48,000, followed by 47,850. Having breached its prior consolidation range, the lower boundary of the previous range will now act as a resistance zone, placed at 48,900, with the next hurdle at 49,400.
"The Nifty began on a negative note, saw consolidation in a narrow range, and closed on flat to negative note at 22,548. The volatility index, India VIX, cooled off by 5.03% to 13.72, indicating a decline in market volatility,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
Technically, on the daily chart, Nifty has formed an inverted hammer candlestick pattern, indicating buying interest around 23,500 levels. As long as the index respects 23,500 levels, a pullback rally towards 22,700-22,800 could be possible. On the higher side, 22,700-22,800 will serve as a solid resistance zone. Sustenance below 22,500 levels could trigger fresh selling pressure. Traders should monitor these levels for potential trading opportunities.
“Similarly, Bank Nifty opened on a marginal positive note, witnessed consolidation in a narrow band, and concluded the session lower at 48,608. On the daily chart, Bank Nifty has formed a red candle with a big upper shadow, reflecting selling pressure on higher levels. On the downside, Bank Nifty will find strong support around 47,840, while on the upside 49,650 will remain a challenging barrier for the index. Traders should closely watch these levels for potential trading opportunities., adds Asit.
