What’s Next for the Market?

StockEdge Morning Market Analysis – 5th March

The Nifty declined 36 points to close at 22,082, influenced by global market weakness. Despite a lower opening, the absence of follow-through selling kept the market within a range. Broader market participation remains strong, with Bank Nifty closing positively while respecting the 48,000 support level. The dollar index dipped to 105.6.

Key Market Insights:

• The index formed a series of lower lows, with RSI hitting a new low.
• After briefly dipping below 22,000, the market saw a rebound.
• The 21,800 support level is now in focus.
• Technical indicators remain oversold, but global market weakness adds pressure.

While Indian indices may attempt a rebound, the global environment remains challenging. Immediate resistance levels are at 22,200 and 22,500, while 21,800 is a crucial support level. Historically, March has been a month of market turnarounds, making this zone a key level to watch.

Trading & Investing Strategy:

• Traders: Wait for a confirmed rebound before taking long positions. Avoid aggressive shorting, as the risk-reward ratio is no longer favorable.
• Investors: Start building a watchlist. Select mid-caps and small-caps are likely to outperform when the recovery begins.

A sharp rebound remains a possibility, but patience and discipline will be essential in the coming days.

Nifty Levels:

• Support: 22,000, 21,800
• Resistance: 22,200, 22,500 View Nifty 50 levels

Bank Nifty Levels:

• Support: 48,100, 47,800
• Resistance: 48,500, 48,900 View Bank Nifty levels

Stay prepared and adaptable in the coming days.