Of course, what also needs to be accounted for the fact that Wednesday’s move has come from deeply oversold levels and a bounce was due sooner or later, both for the Nifty and for the broader markets. The market needed a reason to bounce and the news of US President Donald Trump considering some relief for tariffs imposed on Canada and Mexico was enough to send US futures higher early morning and that rubbed off on other global equities as well.
Add to that was China’s stimulus announcements and sticking to their growth target of around 5% for 2025 as well, despite the looming tariff wars sent Chinese equities soaring as well. That was one of the big triggers as to why the Nifty Metals index was the top sectoral gainer on Wednesday.That does not change the fact that the overall texture of the market may still be weak and the bounce may be used by the bears to initiate shorts again. The Nifty struggled to cross 22,400 on Wednesday, ending nearly 65 points away from the day’s high. So it is these 150 points that will determine whether this move was just another dead-cat bounce or whether the Nifty has indeed found a floor at 21,964 for now.
Crossing 22,500 on the upside will reinforce more confidence among the bulls for a further upmove towards 22,800, a level it vehemently defended for a better part of the February series. Failure to cross this would take the index back to the range it finds itself stuck in currently. Thursday’s weekly options expiry for the Nifty contracts may provide further impetus to this.
The market rallied on a potential relief coming on the tariff front, but it will need clarity on this sooner or later. There is no denying the fact that global equities continue to remain on the edge as to what will Donald Trump do next. All eyes are on Friday ahead of the non-farm payrolls data in the US and then on March 12, when the 25% tariffs on aluminium and steel imports take effect.
Rupak De of LKP Securities expects the Nifty to move to levels of 22,700 or higher as the RSI is in a bullish crossover having risen from an oversold zone. On the downside, 22,100 – 22,000 will act as a strong support.
Immediate resistance for the Nifty is between 22,450 – 22,500 levels, which coincides with the bearish gap left last week, said Rajesh Bhosale of Angel One. 22,200 can now act as a support, followed by Wednesday’s low of 22,050. He also advises caution with these levels in mind ahead of Thursday’s weekly expiry.
Religare Broking’s Ajit Mishra said that traders should avoid reading too much into a single-day bounce and wait for further confirmation. The Nifty may face resistance around 22,500 – 22,700 in case the recovery continues. He advises a stock specific approach favouring banking, financials, and metals for long trades.
The Nifty Bank was an underperformer on Wednesday compared to the Nifty as it did not gain as much compared to the benchmark index. It was the underperformance of shares like HDFC Bank and IndusInd Bank that kept the gains for the index in check. Yet, the Nifty Bank has closed near the 48,500 mark and will look to move further higher towards the resistance zone of 49,000.
Immediate resistance for the Nifty Bank is between 48,600 – 48,660 levels and sustaining above that can trigger a fresh move towards 49,000. On the downside, 47,840 will continue to remain a firm support, said Hrishikesh Yedve of Asit C Mehta Investment Interrmediates.
Om Mehra of SAMCO Securities said that the upside momentum can encounter stiff resistance at the 49,000 mark but considering the turnaround setup, one can consider adopting a buy on dips strategy with an immediate resistance at 48,900 and key support at 47,800. He added that buying opportunities will continue to emerge till the index remains above 47,800.
What Are The F&O Cues Indicating?
Fresh long positions were seen in these stocks on Wednesday, meaning an increase in both price and Open Interest:
| Stock | Price Change | Changed |
| IIIIIIIIFL FINANCE | 11.22% | 51.54% |
| KPIT Tech | 4.65% | 16.50% |
| Titagarh Rail | 3.54% | 13.05% |
| Tata Technologies | 4.95% | 12.81% |
| IREDA | 4.10% | 10.60% |
Fresh short positions were seen in these stocks on Wednesday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | Changed |
| BSE | -3.69% | 12.36% |
| Balkrishna Industries | -1.12% | 6.48% |
| Muthoot Finance | -1.03% | 6.07% |
| Bajaj Finance | -3.11% | 2.69% |
| Indusind bank | -1.20% | 2.48% |
Short covering was seen in these stocks on Wednesday, meaning an increase in price but a decline in Open Interest:
| Stock | Price Change | Changed |
| Deepak Nitrite | 3.96% | -5.27% |
| Manappuram Finance | 2.88% | -3.45% |
| NCC | 4.77% | -3.40% |
| UPL | 2.42% | -3.15% |
| Polycab | 3.50% | -3.10% |
These are the stocks to watch out for ahead of Thursday’s trading session:
- Zydus Life: Gets final approval from the USFDA for Dasatinib Tablets used to treat Philadelphia Chromosome-Positive Chronic Myeloid Leukemia.
- Wipro: Launches Telco AI360 to transform operations for telcos by leveraging AI.
- Galaxy Surfactants: Enters into a strategic collaboration with one of its global customers for providing EPC services.
- TCS: Partners with Europe’s Vantage towers to launch a digital service platform to streamline service processes for property owners.
- RPP Infra Projects: Wins orders worth ₹81 crore from Chennai Metropolitan Water Supply & Sewerage Board.
- IOL Chemicals: European Directorate for Quality of Medicines and Health Care (EDQM) has issued a certificate of sustainability for its API product Quetiapine Fumarate on March 4, 2025. The certification will enable the company to export Quetiapine Fumarate to European and other countries that accept CEPs. Quetiapine Fumarate is an antipsychotic drug which is widely used to treat various mental health disorders.
