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Below the Quote on Pre-Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking Ltd

The Indian equity markets are expected to open on a bullish note today, as indicated by GIFT Nifty, which was trading around 23,492 in early trades, reflecting a modest increase of 112 points. This suggests positive sentiment, influenced by global cues despite the absence of strong domestic triggers. Investors will closely monitor global trends, crude oil prices, and institutional flows to gauge the market’s direction.

In the previous session, Nifty opened flat but witnessed a sharp rally of nearly 270 points from the day’s low. This price action resulted in the formation of a strong bullish candle on the daily chart, attempting to break the 200-day EMA. A breakout above this level could provide a firm directional move. Key support is positioned at 23,000, and a breakdown below this level could extend the decline toward 22,800–22,500. On the upside, resistance is observed at 23,500 and 23,700, with a decisive close above 23,700 potentially triggering a rally toward 24,000.

Similarly, Bank Nifty surged 530 points, forming a strong bullish candle, signalling positive sentiment. On the weekly chart, a double bottom pattern is nearing a breakout, indicating a potential bullish reversal. The index sustained above 50,500 and closed at 50,593.55, staying above key EMAs (20, 50, and 200-day). As long as it holds these levels, sentiment remains bullish. Resistance is at 51,000 and 51,750, while support lies at 50,000 and 49,700, with 49,000 acting as a crucial breakdown level.

On the institutional front, Foreign Institutional Investors (FIIs) continued their buying streak for the second consecutive day on March 21, purchasing equities worth Rs.7,470 crores. Meanwhile, Domestic Institutional Investors (DIIs) extended their selling spree, offloading equities worth Rs.3,202.26 crores on the same day. Given the prevailing market dynamics, traders are advised to exercise caution and await confirmation of price action at critical levels before initiating fresh positions.

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