Pre-Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
Below the Quote on Pre-Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
The benchmark Sensex and Nifty indices are expected to open flat to positive on Feb 27, following GIFT Nifty trends indicating a gain of 15 points for the broader index.
After a flat to positive opening, Nifty can find support at 22,500 followed by 22,400 and 22,300. On the higher side, 22,700 can be an immediate resistance, followed by 22,800 and 22,900.
The charts of Bank Nifty indicate that it may get support at 48,500 followed by 48,200 and 47,900. If the index advances further, 48,800 would be the initial key resistance, followed by 49,200 and 49,500.
The Foreign institutional investors (FIIs) continued their selling on fifth day in a row, as they sold equities worth Rs 3529 crore on February 25. However, domestic institutional investors (DIIs) bought equities worth Rs 3030 crore, on the same day.
INDIAVIX was negative on Wednesday down by 5.04% and is currently trading at 13.7150.
On Wednesday, the Indian markets traded sideways throughout the day. After a flat opening, some buying was observed, but the index remained range-bound, closing near the 22,550 mark. Global markets exhibited mixed sentiment, while concerns persist as Foreign Institutional Investors (FIIs) continued to be net sellers. On the downside, 22,500 serves as a crucial support level, with a breach below this mark potentially triggering extended selling toward the 22,300–22,000 range. On the upside, immediate resistance is seen at 22,800, followed by a critical hurdle near 23,000. A sustained close above these resistance levels is essential to negate the prevailing bearish sentiment and confirm a bullish reversal. Given the ongoing volatility, traders are advised to exercise caution, implement strict stop-loss strategies, and avoid carrying overnight positions.
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