The NSE Nifty 50’s support level at 22,500–22,400 appears to be crucial in the near future and requires careful observation, according to Osho Krishnan, senior research analyst of Angel One.

“Its ability to hold may determine whether a rebound is possible or if further declines are imminent,” Krishnan said. “Conversely, a bearish gap at 22,670–22,720 presents a significant obstacle for the expiry day, which is expected to hinder any potential recovery efforts.”

On the higher side, 22,600 will be the immediate breakout level for the bulls. Above this level, the market can move up to 22,700–22,800, according to Shrikant Chouhan, head of equity research at Kotak Securities.

“Conversely, below 22,500, selling pressure is likely to accelerate. Below the same, the market could slip to 22,400–22,350,” Chouhan said.

The Nifty Bank, which concluded the session lower at 48,608, has formed a red candle with a big upper shadow, reflecting selling pressure on higher levels on the daily chart, according to Hrishikesh Yedve, research analyst at Asit C. Mehta Investment Interrmediates Ltd.

“On the downside, Bank Nifty will find strong support around 47,840, while on the upside, 49,650 will remain a challenging barrier for the index,” he said.

Market Recap

Indian benchmark indices ended Tuesday’s session mixed, with the metal sector declining the most, while media emerged as a top sectoral gainer.

The NSE Nifty 50 ended 5.80 points or 0.03% lower at 22,547.55, while the BSE Sensex closed 147.71 points or 0.20% higher at 74,602.12.

Shares of Mahindra & Mahindra Ltd. and Bharti Airtel Ltd. were the top gainers during the day’s trade, while Hindalco Industries Ltd. and Dr. Reddy’s Laboratories Ltd. were the top laggards.

FII/DII Activity

Foreign portfolio investors continued to stay net sellers of Indian equities for the fifth straight session on Tuesday, while domestic institutional investors remain net buyers for the 15th straight session.

The FPIs sold stocks worth approximately Rs 3,529.1 crore and domestic institutional investors mopped up equities worth Rs 3,030.8 crore, according to provisional data from the National Stock Exchange.

F&O Action

The Nifty February futures were down 0.21% to 22,582.15 at a premium of 34.6 points, with the open interest down 33.86%.

The open interest distribution for the Nifty 50 Feb. 27 expiry series indicated most activity at 21,900 call strikes, and the 26,150 put strikes having the maximum open interest.

Major Stocks In News

  • Dr Reddy’s Laboratories: It has received an establishment inspection report from the US Food and Drug Administration for its facility in Hyderabad’s Bollaram. The FDA has classified the inspection as voluntary action indicated and concluded that the inspection is “closed”

  • Adani Green Energy: The company received a letter of award from Uttar Pradesh Power Corp. for a 1,250-megawatt energy storage capacity from pumped hydro-storage projects.

  • Tata Power: The company has signed an MoU with the Assam government to develop and tie up up to 5,000 MW of renewable and clean energy with Rs 30,000 crore investment at Advantage Assam 2.0.

Global Cues

Stocks in the Asia Pacific region were mixed on Thursday following new tariff announcements from US President Donald Trump on European Union. In addition, Nvidia Corp. earnings failed to rally stocks as the chipmaker drew a muted response from investors that are rather used to blowout results.

South Korea’s Kospi fell 0.52%, or 13.72 points to 2,627.37, while Australia’s S&P ASX 200 was up 0.35% at 8,269.70 as of 7:10 a.m. Japanese markets opened steady on Thursday.

While S&P 500 and Nasdaq 100 contracts were relatively flat, future contract in China hinted at a positive start and Hong Kong equity index futures indicated a lower open.

The US dollar remained flat, while the stocks were mixed on Thursday. The S&P 500 closed little changed while the Nasdaq 100 rose 0.26%. The Dow Jones Industrial Average closed 0.43% lower on Thursday.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.04% up at 106.55. The benchmark yield fell four basis points to 4.26%, the lowest level since December.

Crude oil prices rose in trade on Thursday, with the Brent crude rising 0.26% at $72.72 a barrel as of 7:11 a.m. IST, and the West Texas Intermediate was up 0.25% at $68.79.

Currency Market

The Indian rupee ended sharply lower against the US dollar on Tuesday after recording the worst intraday fall in over three weeks as banks persistently bought the greenback.

The domestic currency weakened 49 paise to close at 87.20 against the greenback, according to Bloomberg data. It settled at 86.71 a dollar on Monday.

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