Quote on Pre-market comment for Tuesday March 24 by Aakash Shah, Technical Research Analyst, Choice Broking
Below the Quote on Pre-market comment for Tuesday March 24 by Aakash Shah, Technical Research Analyst, Choice Broking
Indian equity markets are expected to open on a positive to gap-up note on Tuesday, supported by firm indications from GIFT Nifty, which is signaling a strong rebound after the sharp sell-off seen in the previous session. Positive cues from Asian markets and short-covering at lower levels could aid early recovery, though volatility is likely to remain elevated due to ongoing global uncertainties
In the previous session, benchmark indices witnessed significant selling pressure amid global risk-off sentiment. The Nifty 50 declined sharply by 601 points (2.6%) to close at 22,512, while the BSE Sensex dropped 1,836 points (2.46%) to settle at 72,696. The fall was largely driven by geopolitical tensions, rising crude oil prices, and continued foreign fund outflows, which weighed heavily on investor sentiment
Sectorally, broad-based selling was observed across the market, with banking, auto, and consumer stocks leading the decline. Metal and oil-sensitive sectors also remained under pressure due to the spike in crude prices. Broader markets underperformed, with midcaps and smallcaps witnessing deeper cuts, reflecting risk aversion among investors.
From a technical perspective, the Nifty 50 has slipped below key short-term support levels and is now trading in a weak zone. Immediate resistance is placed near 22,650–22,700, and any pullback towards this range may face selling pressure. On the downside, support is seen around 22,300–22,400, and a breach below this could extend the correction further in the near term.
The Bank Nifty index also remained under pressure, closing at 51,438, reflecting sharp selling in frontline banking stocks. Immediate resistance is now seen near 51,700–51,800, while support is placed around 51,000–51,100. A breakdown below this support zone could extend weakness, whereas any pullback towards resistance may attract selling. Banking stocks are likely to remain volatile and will continue to play a crucial role in determining overall market direction.
On the institutional front, FIIs remained net sellers to the tune of approximately ?10,414 crore, while DIIs continued their strong buying with inflows of around ?12,034 crore, providing stability to the markets amid volatility. Meanwhile, India VIX Meanwhile, India VIX has spiked sharply to 26.7300 up by +17.17%, indicating heightened volatility and caution in the near term.
Overall, the market setup suggests a pullback or relief rally after a sharp correction, but the broader trend remains cautious due to global headwinds. Traders are advised to adopt a sell-on-rise or stock-specific approach, focusing on risk management. Key sectors to watch include banking, oil-sensitive stocks, and defensives, while volatility-driven moves may dominate the session ahead.
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