Quote on Pre-market comment for Friday March 27 by Aakash Shah, Technical Research Analyst, Choice Broking
Below the Quote on Pre-market comment for Friday March 27 by Aakash Shah, Technical Research Analyst, Choice Broking
Indian equity markets are likely to start the March 27 session on a weak note. The GIFT Nifty is currently hovering near 23,139, down by about 161 points, suggesting a subdued opening for the benchmark indices.
The Nifty 50 began the previous session on a positive note, opening 150.80 points higher at 23,064.40. The day’s low was almost identical to the opening level at 23,063.20, indicating strong buying interest at the start. The index then rallied sharply by 402.15 points to touch an intraday high of 23,465.35. However, some profit booking at higher levels trimmed the gains, and the index eventually settled at 23,306.45, up 394.05 points (1.72%). The formation of a bullish candlestick reflects underlying strength in the market. Immediate support is placed between 23,150 and 23,200, while resistance is seen in the 23,450–23,500 zone. The RSI stands at 40.12, indicating a gradual recovery, though it still remains below the neutral 50 mark.
The Bank Nifty also displayed strong upward momentum, signaling improving sentiment in the banking space. It opened significantly higher by 947.05 points at 52,384.80 but declined early in the session to a low of 51,827.50. Thereafter, the index staged a sharp recovery, rising 1,121.65 points to hit an intraday high of 52,949.15. It closed at 52,605.65, posting a gain of 1,167.90 points or 2.27%. The appearance of a spinning top candlestick suggests some degree of market indecision. Support is identified around the 53,700–53,800 range, while resistance is expected between 54,300 and 54,400. The RSI reading of 31.37 indicates that the index is approaching oversold territory.
On March 25, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs.1,805 crore, whereas Domestic Institutional Investors (DIIs) remained net buyers with purchases totaling Rs.5,429 crore.
In light of ongoing global uncertainties and elevated market volatility, investors are advised to maintain a disciplined and selective approach. Accumulating fundamentally strong stocks during market corrections could be a prudent strategy. Fresh long positions should ideally be considered only after the Nifty decisively breaks above and sustains the 24,500 level, which would signal stronger sentiment and the potential for a more sustained bullish trend.
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