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Below Quote on Pre-market comment for Wednesday April 01st by Hitesh Tailor, Research Analyst, Choice Broking

Indian equity markets are expected to begin the April 1 session on a strong footing. The GIFT Nifty is currently trading around 22,785, up approximately 385 points, indicating a positive start for the benchmark indices.

However, in the previous session, the Nifty 50 witnessed significant weakness. It opened sharply lower by 269.95 points at 22,549.65 and briefly rose to an intraday high of 22,714.10. Despite this, sustained selling pressure dragged the index down. After failing to hold the crucial 22,460–22,500 support zone, it slipped further to a low of 22,283.85 and eventually settled at 22,331.40, marking a decline of 486.85 points (-2.14%). The formation of a bearish daily candle reflects underlying weakness. Immediate support is seen in the 22,150–22,200 range, while resistance is placed at 22,700–22,800. The RSI stands at 32.01, indicating near-oversold conditions.

Bank Nifty also experienced intense selling pressure, highlighting weak sentiment in the banking sector. The index opened gap-down by 746.70 points at 51,527.90 and touched an early high of 51,624.50 before selling intensified. It then declined steadily to an intraday low of 50,105.25 and closed at 50,275.35, down 1,999.25 points (-3.82%). Key support levels are at 49,900–50,000, while resistance is expected between 51,200–51,900. The RSI, at 28.44, points to oversold conditions and continued weakness.

On the institutional front, Foreign Institutional Investors (FIIs) remained consistent sellers, offloading equities worth ?11,163 crore on March 30 and continuing their selling trend throughout March. In contrast, Domestic Institutional Investors (DIIs) provided support by purchasing equities worth ?14,894 crore.

Considering ongoing global uncertainties and heightened volatility, investors should adopt a cautious and selective strategy. It may be wise to accumulate fundamentally strong stocks during market corrections. Fresh long positions should preferably be initiated only after the Nifty convincingly breaks above and sustains the 24,000 level, which would indicate improved sentiment and the likelihood of a more durable bullish trend.

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