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On March 21, the two most important benchmarks in India The 30-stock Sensex and Nifty 50, right at the start of the day, dropped a bit, as investors began to book profits after four winning sessions. The drop was however bought into hence the indeks were pushed back into positive territory. There was some selling and buying seen on Wall Street overnight. This pattern was mirrored in the mixed early trade seen in the Asia Pacific region today.
The Nifty 50 index was capped by IT stocks which performed poorly relative to other sectors due to an Accenture miss on guidance with Q2 revenue growth.
Currently, the Sensex is at an increase of 0.02 percent and is at 76,366.91. Whereas the Nifty 50 index was at an increase of 0.05 percent and currently sits at 23,201.10. The overall share market is doing good as 2,223 shares rose, while only 639 fell and 122 remained unchanged.
After the Federal Reserve March meeting there is a hint of apprehension in the markets as US President Donald Trump’s reciprocal tariffs will come into play after April 2nd. Even with those concerns, the Indian equity markets have proven their resilience throughout the month.
“With the Nifty rising by 3.5 percent, the market rally has surprisingly coincided with the increasing strains in trade and the impending tax mark of April 2. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “This rally was majorly induced by the buying by FIIs in the cash market and even more so by the increase in their long positions and decrease in their short positions in the futures market.”
They were net sellers of Indian stocks for a month, but FII turned sellers of India equities on March 18th. “The data suggests that retail investors have increased their footprint into the broader markets which is contrary to this downtrend, ” Vijayakumar said. However, they turned net buyers in the last session with FII selling further in the following session.
Now shifting on from the headwinds, “Yes, so far so good - the Nifty 50’s 50 day SMA is in single digits and it’s 23,000 resistance mark has also been crossed, which is all rather positive.” said Shrikant Chouhan, Kotak Securities head of Equity research.
“Further, the index created a bullish candle on the daily chart, which supports a further increase from current levels. Although we are bullish on the overall market, it would be best for day traders to buy on dips and sell on tops,” Chouhan said. In the short term, he expects the Nifty to find support at 23,100 and 23,000 or (50-day SMA) and face resistance at 23,300 and 23,400.
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