Daily Market Outlook 05th March 2026 by FundsIndia
Market Opening View
GIFT Nifty futures for March delivery were trading around 24,710 at 7:30 AM, indicating a gap-up opening for the Nifty today.
Market Recap & Technical Outlook
On Wednesday, the Nifty opened gap-down and slipped below the 24,500 mark. The index witnessed selling pressure in the first half but recovered nearly 200 points from the day’s low, supported largely by Bharti Airtel. However, it closed below the previous month’s low and ended in the red for the third consecutive session amid escalating West Asia tensions.
The Nifty declined 385.20 points to close at 24,480.50. Sectorally, all indices ended lower except IT, while the Metal index fell nearly 4%. Only four Nifty stocks managed to close in the green. A weaker rupee, hitting a fresh low of ?92.3, further dampened sentiment.
The index formed a bullish candlestick pattern on the daily chart; however, selling pressure is expected to persist in the near term.
* Short-term trend remains bearish
* Trend turns bullish only above 25,000
* 9-day SMA positioned at 25,296
* India VIX closed above 16, rising 54% in two sessions, signaling elevated volatility
Global Market Snapshot
U.S. markets rebounded on Wednesday, partially recovering from the previous session’s losses. The Nasdaq led gains as investors bought at lower levels and reacted positively to stronger-than-expected private sector job data and robust U.S. services sector growth.
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Dow Jones rose 238 points to close at 48,739.41
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S&P 500 gained 52 points to settle at 6,869.50
Derivatives Snapshot
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In Index Futures, FIIs reduced long positions by 4,109 contracts and increased short positions by 15,131 contracts, making them net bearish by 19,240 contracts.
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In Options, FIIs were net bullish by 2,063 contracts.
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Highest Put Open Interest: 24,400
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Highest Call Open Interest: 24,700
This suggests a near-term trading range between 24,400–24,700.
Stocks in Focus (OI-Based View)
Bullish: Oil, Mphasis, Dixon Technologies, Swiggy, Bharti Airtel, Solar Industries, National Aluminium, PB Fintech, Infosys, Tech Mahindra
Bearish: KEI, Uno Minda, APL Apollo, Indian Bank, Blue Star, Federal Bank, Lodha, AU Bank, CAMS, Petronet
Key News & Developments to Watch
* U.S. Treasury Secretary Scott Bessent indicated further escalation in tensions with Iran, stating the U.S. has established “full control” over Iranian skies.
* Russia is reportedly ready to divert oil supplies to India to offset potential Middle East disruptions. India currently holds crude stocks covering about 25 days of demand.
* The U.S. may raise global tariffs by 10–15%, with rates potentially reverting to earlier levels within five months.
* BSE received SEBI approval to launch derivative contracts on the BSE Sensex Next 30 Index, offering cash-settled monthly futures and options.
* GE Shipping acquired a second-hand Kamsarmax dry bulk carrier as part of its fleet expansion strategy.
* Bharat Forge approved raising an unsecured rupee term loan of up to ?800 crore under its broader ?2,000 crore limit.
Nifty Technical Outlook
On Wednesday, the Nifty opened gap-down and slipped below 24,500. The index saw selling pressure in the first half but later recovered about 200 points from the day’s low, supported by Bharti Airtel. However, the index closed below the previous month’s low and ended in the red for the third consecutive session as West Asia tensions escalated. All sectoral indices ended in the red except IT, with the metal index falling around 4%. India VIX jumped 54% in two sessions, indicating rising market fear. Only four Nifty stocks closed in the green, while a weaker rupee hitting a new low of ?92.3 also weighed on sentiment. The Nifty plunged 385.20 points closing at 24,480.50. The Nifty formed a bullish candlestick pattern on the daily chart, but we expect the selling pressure to continue for the day. The volatility index IndiaVIX has closed above 16 and we expect the volatility to increase in the short term. The Nifty short-term trend remains bearish and the trend will turn bullish only above 25,000 levels. The 9-day simple moving average is placed at 25,296.
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