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

Indian equity markets are expected to open on a flat to bearish note today, as indicated by GIFT Nifty, which was trading around 22,578 in early trades, reflecting a modest decline of 8 points. This suggests subdued market sentiment driven by global cues and the absence of strong domestic triggers. Investors will closely monitor global trends, crude oil prices, and institutional flows to assess the market’s further direction. 

The market witnessed a significant gap-down opening and remained under pressure throughout the session, with the Nifty closing 243 points lower. On the daily chart, Nifty formed a bearish candlestick pattern, indicating the possibility of further downside. The index had been consolidating and attempting to rebound, but the failure to sustain its recovery led to a breakout on the downside. Immediate resistance is placed at 22,650 and 22,800, and a sustained close above these levels could trigger an upside move towards 23,000 and 23,250. On the downside, key support levels are at 22,400 and 22,125. 

Similarly, Bank Nifty experienced notable volatility, initially declining by nearly 329 points before rebounding sharply by 700 points, forming a hammer candlestick pattern. While this pattern suggests a potential reversal, confirmation is required for a clearer trend. A sustained move below the crucial support level of 48,500 could lead to further downside, with immediate support at 48,260 and 47,857. Conversely, if the index reverses from these levels, it may present buying opportunities. On the upside, resistance is observed at 48,690, and a decisive close above this level could trigger a rally toward 49,000. 

On the institutional front, Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth Rs.6,286 crore on February  24. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying spree, acquiring equities worth Rs.5,185 crore on the same day. Given the prevailing market dynamics, traders are advised to exercise caution and wait for confirmation of price action at critical levels before initiating fresh positions.

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