The NSE Nifty 50’s key support zones stand at 22,700–22,600 after the stock markets ended in the green for the second session on Tuesday, while 22,950 and 23,000 could be profit-booking areas, according to analysts.

The index formed a strong bull candle with a higher high and higher low and a bullish gap below its base of 22,577-22,600, signaling a positive follow through to the previous session, according to Bajaj Broking Research.

Immediate support is placed at 22,500-22,600 levels, and holding above the same will keep the bias positive, they added.

“In the near future, 22,700 and 22,600 will act as key support zones, while 22,950 and 23,000 could serve as profit-booking areas for day traders,” Shrikant Chouhan, head of equity research at Kotak Securities, said.

“We believe that the short-term market outlook is bullish, but for day traders, buying on intraday corrections and selling on rallies would be the ideal strategy,” Chouhan stated.

The Bank Nifty is expected to maintain a positive bias and head towards 50,000 and 50,600 levels in the coming sessions, added Bajaj Broking. Immediate support is placed at 48,400-48,600 levels, being the confluence of the 20-day EMA and the Tuesday gap-up area, they stated.

“Bank Nifty gained for the fourth session in a row as it formed a strong bull candle with a higher high and higher low and a bullish gap below its base of 48,480-48,629, highlighting a positive follow-through after a positive opening,” Bajaj Broking said.

Market Recap

India’s benchmark equity indices had their best day in 28 sessions on Tuesday, closing higher for the second consecutive day as easing fears over a US recession and an improved outlook for China lifted global stocks.

The NSE Nifty 50 ended 325.55 points or 1.45% higher at 22,834.30, while the BSE Sensex closed 1,131.31 points or 1.53% up at 75,301.26.

FII/DII Activity

Foreign portfolio investors bought stocks worth Rs 694.57 crore on Tuesday after they turned net buyers of Indian equities after 17 straight sessions, as per the revised provisional data from the National Stock Exchange. While domestic institutional investors mopped up stocks worth Rs 2,534.75 crore, as per the revised numbers.

FPIs were net buyers of Indian equities on Feb. 18 and they mopped up equities worth Rs 4,786.56 crore.

F&O Cues

The Nifty March futures were up 1.41% to 22,895.40 at a premium of 61.1 points, with the open interest down 2.57%.

The open interest distribution for the Nifty 50 March 20 expiry series indicated most activity at 23,000 call strikes, and the 22,500 put strikes had the maximum open interest.

Major Stocks In News

  • LIC: The company addressed reports regarding its potential entry into the health insurance sector, stating that it is in advanced discussions to acquire a significant stake in a standalone health insurance provider.

  • Bajaj Auto: The company has approved the re-appointment of Rajivnayan Rahulkumar Bajaj as the managing director and chief executive officer for another five years from April 1.

  • G R Infraprojects: The company has received a letter of acceptance for Rs 4,263 crore order from NHAI. The project comprised construction of the Agra–Gwalior greenfield road through design, build, finance, operate and transfer mode. The contract is expected to be completed within 910 days from the appointed date

Global Cues

Asian stocks showed resilience early Tuesday, bucking the trend of declines on Wall Street. Shares in Japan and South Korea rose, while Australian equities slipped.

The Nikkei 225 was up 0.6% and the Kospi was higher by 0.9%. Australian benchmark S&P/ASX 200 fell 0.09%. Hang Seng futures soared 2.22%.

US stocks took a hit on Tuesday, with tech companies leading the decline, as investors anxiously await the Federal Reserve’s interest rate decision on Wednesday. The S&P 500 index dropped 1.1%, while the Nasdaq 100, heavily weighted with tech stocks, fell 1.7%. The Dow Jones Industrial Average also slipped, shedding 0.6%.

Meanwhile, futures indicate higher opening for all three indices ahead of the Fed meeting. Contracts for S&P 500 and Dow Jones Industrial Average were up 0.3%, while Nasdaq was 0.4% higher.

In commodities, brent crude slipped 0.13% to $70.47 per barrel amid concerns about a global glut that overshadowed escalating tensions in the Middle East. Gold remained near its record level of $3,030 an ounce.

The US dollar index rose 0.1% to 103.352, while the 10-year Treasury bond yield was flat at 4.3%.

Other than the Fed decision, investors will look at Eurozone retail inflation data and Bank of Japan rate decision.

Forex Market

The Indian rupee ended at over three-week high against the US dollar on Tuesday, strengthening for the third straight session as banks persistently sold the greenback on account of foreign fund inflows.

The local currency ended 23 paise higher at 86.57 against the US dollar, according to Bloomberg data. It opened six paise higher at 86.74.

. Read more on Markets by NDTV Profit.Immediate support is placed at 22,500-22,600 levels, and holding above the same will keep the bias positive.  Read MoreMarkets, Business, Notifications 

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