Quote on Pre-market comment for Wednesday March 18 by Aakash Shah, Technical Research Analyst, Choice Broking
Below the Quote on Pre-market comment for Wednesday March 18 by Aakash Shah, Technical Research Analyst, Choice Broking
Indian equity markets are expected to open on a mildly positive to steady note on Wednesday, supported by stable global cues and firm indications from GIFT Nifty, which is hovering with a slight uptick, indicating a flat-to-gap-up start for domestic benchmarks. Positive sentiment in Asian markets and easing volatility could lend support in early trade, though gains may remain capped near resistance zones.
In the previous session, benchmark indices extended their recovery momentum with sustained buying across key sectors. The Nifty 50 closed at 23,581, gaining 172 points, while the BSE Sensex ended at 76,070, up 568 points. The rally was driven by continued short covering and selective buying in index heavyweights despite global uncertainties.
Sectorally, banking and financial stocks remained the key outperformers and continued to lead the market. Auto and capital goods stocks also witnessed steady buying interest, while broader markets showed mixed participation with midcaps holding relatively firm and stock-specific action dominating.
From a technical perspective, the Nifty 50 is now trading near a crucial resistance zone of 23,700–23,750. A decisive breakout above this range could open the path towards 23,800–23,850 in the near term. On the downside, immediate support is placed near 23,400–23,450, followed by the previous day’s low near 23,346, which acts as an important short-term support level.
The Bank Nifty index also maintained strength in the previous session, closing at 54,876. Immediate support is seen around 54,500–54,600, while resistance is placed near 55,100–55,200. A breakout above this band could further strengthen momentum in banking stocks, which continue to remain key drivers for the broader market.
On the institutional front, FIIs remained net sellers to the tune of approximately ?4,741 crore, while DIIs continued their strong buying with inflows of around ?5,225 crore, providing stability to the markets amid volatility. Meanwhile, India VIX cooled off and is hovering around the 19.7900 zone, indicating easing volatility after the recent spike and suggesting improving near-term risk sentiment.
Overall, the market setup suggests a range-bound to mildly bullish undertone for the session. Traders may continue to focus on banking, financials, and capital goods stocks, which are showing relative strength. However, with indices approaching key resistance levels, a stock-specific approach with disciplined risk management remains advisable for the trading session ahead.
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