After a roller-coaster week, the Nifty ended 0.69 percent lower, while the Sensex was down by 500 points
Amol Athawale,
VP-technical Research,
Kotak Securities
Mumbai, March 13, 2025: In the last week, the benchmark indices witnessed range-bound activity. After a roller-coaster week, the Nifty ended 0.69 percent lower, while the Sensex was down by 500 points. Among sectors, IT and Capital Market indices lost the most, shedding over 4 percent, while some buying was seen in selective Financial and Pharma stocks.
Technically, the market is exhibiting non-directional activity; on the lower side, it is consistently finding support near 22300/73300, while profit booking has been witnessed between 22600/74700 and 22650/74900. We believe that the current market texture is non-directional, and traders may be awaiting a breakout in either direction. For the bulls, the key breakout zone is at 22650/74900. A dismissal of the 22650/74900 breakout could push the market towards 22800-22900/75500-75800. Conversely, if the market falls below 22300/73300, selling pressure is likely to accelerate. Below this level, the market could retest levels of 22100-22000/72700-72400.
For the Bank Nifty, a double bottom support is placed at 47700. As long as it is trading above this level, a pullback formation is likely to continue. On the higher side, it could move up to the 20-day Simple Moving Average (SMA), or 48600 and 48800. However, if it falls below 47700, the sentiment could change, increasing the likelihood of hitting 47300-47000.
Satish Chandra Aluri, Lemonn Markets Desk, adds: Benchmark indices closed lower on Thursday as softer inflation data failed to cheer the markets as focus remained on risks from trade war. Broader Mid and Small caps also posted losses.
After opening higher on positive cues from macro data, markets failed to sustain the gains and eventually slipped into red with cautious sentiment over trade war dampening the outlook despite the lower inflation data paved way for expectations of more rate cuts from RBI. Domestic Feb inflation data came in at 7-month low of 3.6% YoY, well below 4% expected and medium target of RBI and down from 4.3% YoY in January. This is expected to boost the argument for rate cut in upcoming RBI meet in April. US inflation data released overnight also came in slightly lower than expected leading to positive close for US indices.
Markets continued to focus on trade developments and expected impact on US and global growth as tariff war escalates, and unable to build any momentum for a decent upside or rebound in benchmarks.
Technically, Nifty 50 increasingly looks vulnerable again to the downside after failing to close above 22500 level for 3 consecutive sessions. Bank Nifty closed flat today with immediate support hovering around the 48000 levels.
