The Nifty 50 index experienced another volatile session as investors remained skeptical about the recent market recovery and chose to stay neutral ahead of the Nifty weekly expiry. The 22,300 level offered support again for the Nifty and resulted in another upside recovery towards the mid-to-later part of the session.
The Nifty closed with minor cuts but sharply off the lows. The index closed the day lower by 27 points at 22,471.
The broader market also showed weakness with Nifty Midcap100 declining by 0.6% and Smallcap100 down by 0.2%. Amongst sectors, Nifty IT was down 3%, making it the top sectoral loser.
On the other hand, financial stocks outperformed, helping the Nifty Bank index stay in positive territory. HDFC Bank and Kotak Mahindra Bank were the top contributors to the index’s resilience.
IndusInd Bank shares made a minor recovery from the lows hit yesterday. The stock fell as much as 7% in early trading before staging a sharp recovery from the lows. At the lows on Wednesday, IndusInd Bank’s market capitalisation had briefly dropped below the mark of ₹50,000. It must be noted that the stock is in the F&O ban, which means no new positions can be created in the stock.
Shares of Tata Motors Ltd. saw buying on Wednesday, after the company’s CFO held an analyst meet, in which he shared assuring remarks on the road ahead for the passenger and commercial vehicle manufacturer. The stock snapped a two-day losing streak in the process. Tata Motors’ CFO assured analysts that Jaguar Land Rover (JLR) will meet its fourth quarter EBIT margin guidance of 10% will also turn net debt free by the end of the fiscal.
Thursday’s trading session will be the weekly options expiry day.
Meanwhile, US consumer prices increased less than expected in February, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports that are expected to raise the costs of most goods in the months ahead.
India’s retail inflation also eased to seven-month low of 3.61% in February 2025, down from 4.31% in January. The industrial output growth was above expectation at 5% YoY in January 2025 against 3.2% in December.
The above factors are likely to infuse some positive into the markets on Thursday.
What do the Nifty 50 charts indicate?
Nagaraj Shetti of HDFC Securities said the underlying trend of Nifty is range bound. A decisive move above 22,700 levels could open further upside towards 23,200 levels. However, immediate support is placed at 22,300 levels.
According to Rupak De of LKP Securities, the index remained above 22,300 throughout the day. A multiple-bottom formation is observed around 22,300, making this level a crucial short-term support. On the higher end, it faces resistance at 22,500/22,600.
Devarsh Vakil of HDFC Securities said that a move above 22,677 could trigger a further rally toward the next resistance level at 23,000. On the downside, the support band between 22,245-22,300 is likely to continue providing a floor for Nifty.
What do the Nifty Bank charts indicate?
The Nifty Bank index ended the session at 48,056.65, up 0.42%, but continues to hover around the 48,000 zone without a clear directional trend. The daily RSI remains below 40, while the MACD continues to signal a negative crossover, reflecting weak momentum.
The 9-EMA at 48,380 serves as immediate resistance, and a breakout above this level is crucial to trigger a meaningful pullback. On the downside, support is placed at 47,700, with a potential decline toward 47,500, if breached, said Om Mehra of SAMCO Securities.
Mehra said that the banking sector showed a mixed response, with the Nifty Private Bank index closing in positive territory while the Nifty PSU Bank index ended lower. Nifty Bank may undergo further time correction before establishing a decisive trend.
