Indian stock market indices, Sensex and Nifty 50, are expected to open on a mildly positive note Wednesday, following global market trends. The Gift Nifty is indicating a green start for the Indian benchmark index, trading around 21,910 levels. This comes after a recent decline in the domestic equity indices, with the Nifty 50 falling to its lowest level in over a month.
The Sensex and Nifty 50 ended over a percent lower on March 19, with the Sensex dropping 736.37 points to 72,012.05 and the Nifty 50 settling 238.25 points lower at 21,817.45. Nifty formed a long bear candle on the daily chart, breaking immediate support levels and indicating a potential further decline.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the Nifty may see lower levels around 21,500 in the next week, with any rise up to 22,000 presenting a sell-on-rise opportunity. The Nifty Open Interest data shows the highest OI on the call side at the 22,000 strike price and on the put side at the 21,500 strike price.
Rupak De, Senior Technical Analyst at LKP Securities, notes that the Nifty has broken down from a rising wedge pattern on the daily chart, suggesting a potential reversal of the uptrend. Key levels to watch include resistance at 22,000 and support at 21,800, with a drop below 21,700 potentially leading to further correction.
In the Bank Nifty index, which declined 191 points to close at 46,385 on Tuesday, De recommends traders consider a buy-on-dip strategy with a stop-loss level at 46,000. Key levels to watch in the Bank Nifty include support at 46,000 and resistance at 47,000.
Overall, analysts are cautious about the current market trends and advise investors to seek advice from certified experts before making any investment decisions.
