A weak global outlook led to a gap-down opening, but selective buying in heavyweight stocks helped recover losses and pushed the indices higher by the close.
However, financials underperformed, weighed down by issues related to IndusInd Bank. While IndusInd Bank, Axis Bank, and HDFC Bank dragged Nifty Bank lower, ICICI Bank provided some support.Shares of IndusInd Bank recorded biggest single-day fall, declining 27% on Tuesday, after more analysts who have coverage on the lender have issued downgrades and cut their price target on the stock. This, after the bank informed the exchanges of another negative development on March 10. The lender erased market cap of Rs 20,000 crore as the stock saw a steep fall.
Shares of real estate companies witnessed strong buying interest, pushing the Nifty Realty up by 3.6%. Telecom stocks gained following reports that the government has sought parliament’s approval to spend ₹53.2 billion to upgrade telecom networks in under-served areas. Conversely, Nifty IT was under selling pressure on the back of weak global cues.
Looking ahead, global cues, particularly from the US, may continue to drive volatility.
Foreign investors continued to remain net sellers in the cash market on Tuesday, while domestic institutional investors were net buyers.
What do the Nifty 50 charts indicate?
After the negative chart pattern like lower tops and bottoms over the last few weeks, the Nifty is now in the process of forming a new higher bottom at 22,300 levels, said Nagaraj Shetti of HDFC Securities.Shetti believes that a decisive upmove above the hurdle of 22,700-22,800 levels could confirm the bullish shift and that could open more upside in the near term. Immediate support is placed at 22,315 levels.
Om Mehra of SAMCO Securities believes the Nifty continues to trade without a clear direction in the broader trend. The range of 22,300–22,680 will be crucial in determining the next breakout, as a move beyond this zone could set the course for further action. The immediate support is positioned at 22,300, while a decisive close above 22,600 will be essential to confirm a sustained uptrend.According to Rupak De of LKP Securities, the index might continue its strength with the potential to reach 22,660–22,700 in the very short term. Above 22,700, the Nifty might move towards 23,000. On the lower end, support is placed at 22,400 on a sustained basis.
“On the technical front, a decisive breakout from the 22,250-22,650 range could set the next directional move for Nifty; otherwise, the sideways trend may persist,” said Ajit Mishra of Religare Broking.
What do the Nifty Bank charts indicate?
The Nifty Bank ended the session at 47,853.95, registering a decline of 0.75%. The index breached its previous swing low of 47,841 and touched an intraday low of 47,702.90. A gap-down opening, triggered by a sharp decline in IndusInd Bank stock, has further deteriorated the outlook.
“Nifty Bank has slipped below the 9 EMA. The daily RSI stands at 36, indicating a weak momentum. Unless the index reclaims 48,500 on a closing basis, till then short-term weakness is likely to persist. The key support levels are positioned at 47,450, followed by 47,200,” Mehra said.
Here are the stocks to watch ahead of Wednesday’s trading session:
– Tata Consultancy Services (TCS) to acquire 100% equity shares of Darshita Southern India Happy Homes for ₹2,250 crore.
– Bharti airtel transfers 69.94% stake in ‘Airtel Payments Bank’ to its Arm ‘Airtel’.
– Kaynes Technology: Managing Director Ramesh Kunhikannan gets a Show-Cause Notice from the Securities and Exchange Board of India (SEBI). The Notice alleges suspected violations in maintenance of Structured Digital Database (SDD) pertaining to financial results for the period ended March 31, 2023.
– TVS Motor: Indian Foundation For Quality Management (IFQM) shareholding reduces to 18.18% in the company. IFQM ceases to be an associate of the company.
– Adani Green: Arm Adani Solar Energy Ap Eight commissions solar power project of 250 MW at Kadapa, Andhra Pradesh.
– Rvnl emerges as the Lowest Bidder (L1) for National Highway Authority of India (NHAI) project worth ₹554.64 crore.
– KPI Green Energy appoints Surinder Kumar Negi as chief operating officer of the company w.e.f. March 12, 2025.
