IGI Logo

Quote on Pre market comment for Wed March 05 by Hitesh Tailor, Research Analyst, Choice Broking Ltd

Indian equity markets are set to begin the March 5 session on a firm footing, as GIFT Nifty trades around 24,666, higher by nearly 81.3 points, signaling a positive opening for domestic benchmarks.

The Nifty 50 experienced heavy selling pressure during the previous session. The index opened sharply lower with a gap-down of nearly 420 points and slipped further to an intraday low of 24,305.40. However, in the second half of the session, it staged a partial recovery, rising to 24,602.45 before settling at 24,480.50. On the technical front, the 24,300–24,350 range is expected to act as a crucial support zone, while immediate resistance is placed between 24,600 and 24,650. The Relative Strength Index (RSI), at 30.37 and below the 50 mark, reflects continued weakness in momentum.

Similarly, Bank Nifty opened on a weaker note, declining to 58,393 in early trade before recovering to an intraday peak of 59,058.40. Despite bouncing from its lows, it ended the session at 58,755.25, indicating selective buying interest at lower levels. Technically, resistance is positioned in the 59,000–59,100 band, whereas support lies in the 58,400–58,500 zone. The RSI reading of 48.11 suggests neutral momentum with a mild bearish inclination.

On March 4, Foreign Institutional Investors (FIIs) continued their selling activity for the fourth consecutive session, offloading equities worth Rs 8,752 crore. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying run to six straight sessions, purchasing shares valued at over Rs 12,000 crore, which helped counterbalance the outflows from FIIs.

Given ongoing global uncertainties and heightened volatility, investors are advised to remain disciplined and adopt a selective strategy, focusing on fundamentally sound stocks during market corrections. Fresh long positions should preferably be initiated only after a clear and sustained breakout above the 25,000 level on the Nifty, which would indicate strengthening sentiment and confirm the formation of a more robust bullish structure.

Above views are of the author and not of the website kindly read disclaimer