There are still known unknowns around the trade policy which is keeping the rebound in check.
Satish Chandra Aluri,
Lemonn Markets Desk
Mumbai, March 11, 2025: Benchmark indices ended largely flat on Tuesday with Nifty 50 eking out marginal gain while Sensex closed flat. Broader Mid and Small caps ended mixed with Mid cap posting gains.
After opening sharply lower following the overnight losses in US indices on recession worries, markets steadily recovered throughout the day backed by gains in realty, oil & gas stocks and infrastructure stocks. IndusInd bank is the largest laggard for Nifty 50, after the private lender reported discrepancies in its derivatives accounting to the tune of Rs1500Cr, equivalent to 2.35% of its net worth as of Dec 2024. This is coming after RBI approved only 1yr extension to the CEO despite Board recommending a 3yr extension. This raised concerns on internal controls amid weak earnings and questions around management succession leading to a sharp fall of ~27%.
Market seems to be in a place where the intensity of selling reduced as lot of negatives seems to be priced in but there are still known unknowns around the trade policy which is keeping the rebound in check.
According to Shrikant Chouhan, Head Equity Research, Kotak Securities, Today, the benchmark indices witnessed a modest recovery from lower levels, with the Nifty ends 38 points higher and the Sensex up by 13 points. Among sectors, the Realty index outperformed, rallying by 3.75 percent, while the Private Banks and Capital Market indices shed over 1 percent.
Technically, in the backdrop of weak global sentiment, our market opened with a gap down; however, due to buying interest at lower levels, it recovered sharply. We believe that as long as the market is trading above 22,300/73700, the short-term outlook remains bullish. On the higher side, it could retest the levels of 22,600-22,650/74500-74700. Conversely, if it falls below 22,300/73700, the sentiment could change. Below this level, traders may prefer to exit their long positions.
Technically, Nifty 50 again closed just below the 22500 level, but had strongly rebounded from support levels around 22300. Expect 22600-22700 to act as resistance on the upside. Bank Nifty posted sharp losses, owing to plunge in IndusInd bank today with next support around 47500 levels.
