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Market Update

Nifty : 22,552.50 +7.80 (+0.03%)

Sensex : 74,332.58 -7.51 (-0.01%)

* Nifty ended with marginal gains of 8 points at 22,553 level, closing in the green for the third consecutive day. The recent gains in Nifty are driven by value buying following the sharp market decline.

* Also, there is some relief on the US tariff front as President Donald Trump postponed the 25% tariffs on most goods from Canada and Mexico, which he imposed this week. The temporary suspension is till April 2nd, when the US has threatened to impose a global regime of reciprocal tariffs on all trading partners.

* Shares of Indian IT companies were under selling pressure as a weakening US dollar and a decline in the tech-heavy Nasdaq index weighed, with the Nifty IT index down 0.9%. Conversely, the Oil & gas index gained 0.6% on the back of falling crude prices and the Metal index rose by 0.4% on China’s announcement of cutting its steel output and ramping up stimulus.

* Broader market traded mixed with Nifty Midcap100 down 0.3%, while Smallcap100 was up by 0.7%.

* Investors to watch out for US unemployment rate and Fed Chair Powell’s commentary later today and Trump’s address on Saturday, for further cues. We expect the market to trade within a broad range, albeit some volatility on account of fickleness in global developments.

Technical Outlook:

* Nifty Index opened flattish and after a good move in the first tick, it touched 22633 and witnessed some profit booking midday. It witnessed some recovery and range bond move for the rest of the day and finally closed above 22550 zones. Nifty has recovered by 670 points in the last four sessions which has been a breather.

* It formed a small bodied bullish candle on daily frame. It formed a bullish candle on weekly frame with longer lower shadow indicating support based buying is intact for the short term recovery. Now it has to hold above 22450 zones for an up move towards 22700 then 22900 zones while supports have shifted higher to 22400 then 22250 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.08% at 22639 levels. Positive setup seen in IRFC, Reliance, Apollo Tyres, SRF, ATGL, Manappuram Finance, Berger Paints, NALCO, Godrej Consumer Products, Hindalco and BEL while weakness in Kalyan Jewellers, Zomato, IndusInd Bank, OFSS, Jubilant Foodworks, Paytm, Nykaa, Godrej Properties, Prestige Estate, Lodha, and Dixon.

* On option front, Maximum Call OI is at 23000 then 22800 strike while Maximum Put OI is at 21500 then 22000 strike. Call writing is seen at 22800 then 23100 strike while Put writing is seen at 22600 then 22500 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22300 to 22700 levels.

* Veranda Learning – Company signs accord with IIT Madras to launch competitive exam courses – Positive.

* K&R Rail Engineering to Partner with Indian Port Rail and Ropeway on Infrastructure Projects – Company has signed a memorandum of understanding with the Indian Port Rail and Ropeway Corporation, under the Indian government's Ministry of Shipping. The pact is for executing major railways, roads, highways, ports, and other projects of larger volume in the range of Rs 50cr and Rs 5000cr – Positive.

* Jana Small Finance Bank Gets Approval To Deal In Foreign Exchange - Company has received approval from the Reserve Bank of India to obtain an Authorized Dealer Category-I licence, enabling it to deal in foreign exchange – Positive.

* Inox Wind Energy – Company has secured an order for 153 MW wind turbines for a project located in Tamil Nadu – Positive.

* J. Kumar Infraprojects(BSE) – Company secures order worth of Rs 120cr from RVNL – Positive.

* Indian Overseas Bank – Company to consider fundraising via bonds on March 19 – Positive.

* Kaushalya Logistics – Company starts operations at Tohana Depot for Ambuja – Positive.

* B.R Goyal Infrastructure(BSE) – Company wins order worth of Rs 70.7cr from NHAI – Positive.

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