After an early morning intraday selloff, the market found support near 22,000/72800 and bounced back sharply.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, March 3, 2025: Today, the benchmark indices witnessed volatile momentum. After a rollercoaster of activity, the Nifty ended 5 points lower, while the Sensex was down by 112 points. Among sectors, Defence, Realty, and Metal indices gained over 1 percent, whereas the Capital Market index corrected sharply, shedding over 2 percent. After an early morning intraday selloff, the market found support near 22,000/72800 and bounced back sharply.
Technically, it has formed a bearish candle on the daily charts and is still holding a lower top formation on the intraday charts, which is largely negative. We believe that the current market texture is weak but oversold; hence, we could expect a quick pullback rally from the current levels. For day traders, 22,000/72800 would act as a sacrosanct support zone. As long as the market is trading above this level, the pullback formation is likely to continue.
On the upside, 22,200/73400 would be the immediate resistance zone for the bulls. If the market moves above 22,200/73300, it could rally up to 22,250–22,300/73500-73800. On the flip side, if it falls below 22,000/72800, traders may prefer to exit their long positions.
According to Satish Chandra Aluri, Lemonn Markets Desk, benchmark indices ended largely flat on Monday, in another volatile start to the new week and month. Broader markets continued to remain under selling pressure although eventually ended mixed with mid cap index posting gains while small caps posted losses.
After opening higher following the positive global cues, markets gave up gains to trade lower with benchmark Nifty 50 coming near 22000 level before reversing to close flat for the day. Markets continued to be haunted by same old factors – Foreign selling, weak earnings and still not attractive valuations – with overall sentiment remaining firmly bearish. Q3 GDP data released on Friday, although improved, failed to provide the assurance that there will be durable growth recovery. Positioning in the derivatives market suggests further pain in the near term as HNIs and retail investors reduce longs, while foreign investors hedge stock futures with index shorts.
Technically, Nifty 50 tested immediate key level of 22000 on the downside and rebounded. Chances for a relief rally in coming session are increasing as RSI suggest oversold conditions. Bank Nifty posted sharp losses again with next support around 48000 levels.
