Market in Freefall: Nifty Slumps 420 Points as FIIs Intensify Sell-Off

StockEdge Morning Market Analysis – March 3rd

A Brutal Sell-Off

Nifty witnessed a sharp decline, plunging 420 points to 22,124, with all sectors closing in the red. IT and Auto were the worst-performing sectors in Friday’s session.

Technical View

The session saw a gap-down opening, a steady decline, and a close at the day’s low, indicating strong bearish momentum.

FIIs Sell-Off Intensifies

Foreign Institutional Investors (FIIs) offloaded over ?11,000 crores, further pressuring the markets. Meanwhile, the Dollar Index surged to 107.2+ levels.

Bank Nifty Holding Strong

Despite the broader market weakness, Bank Nifty exhibited resilience, trading above key support levels.

• Major Support: 47,800-48,000
• Resistance Levels: 48,500, 48,900 View Bank Nifty Levels

Nifty Levels to Watch

• Support: 22,000, 21,800
• Resistance: 22,450, 22,500 View Nifty 50 Levels

Market Outlook

"The trend is your friend until it ends." – Ed Seykota

• Pullback rallies may remain short-lived; traders should align with the prevailing trend.
• The Nifty P/E ratio is approaching long-term support (~20), making this a good time to start screening for quality long-term investment opportunities.
• No clear bottoming signs yet—markets need to develop reversal patterns before any sustained strength emerges.

Key Takeaways

• Nifty declined by 420 points, led by broad-based sectoral weakness.
• FIIs continued heavy selling, exerting downward pressure.
• Bank Nifty showed relative strength, holding above key support levels.
• No confirmed bottoming signals yet—caution is advised.

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