Nifty 50 Technical Analysis and Outlook – March 5, 2025
GIFT Nifty Slips 20 Points: Key Market Insights for March 5, 2025
Indian stock markets continued their downward streak for the tenth consecutive session, hitting a fresh nine-month low before closing moderately lower. However, the Nifty showed a strong intraday recovery from the day's low on March 4, signaling some buying interest at lower levels.
The recent imposition of tariffs by the United States—25% on imports from Canada and Mexico and an additional 10% duty on Chinese goods—has heightened trade tensions, further impacting investor sentiment.
Market Outlook: Subdued Sentiment with Selective Buying
Given the ongoing geopolitical and economic uncertainties, analysts expect Indian equities to trade with a cautious bias. While foreign institutional investors (FIIs) continue to pull out funds, some resilience in broader market segments may provide partial support.
GIFT Nifty Signals Muted Opening
The GIFT Nifty (formerly SGX Nifty) traded 20 points lower at 22,124.50 on the NSE IX exchange, indicating a sluggish start for domestic equities on Wednesday.
Technical View: Key Levels to Watch
- Nifty edged off the lower end of the Bollinger Bands but continued forming a lower tops-lower bottoms pattern, signaling a weak trend.
- If the index rebounds, resistance levels will be at 22,250-22,300, with 22,500 as the next major hurdle.
- If 22,000 is breached, Nifty could drop toward 21,900-21,800.
- Experts expect the index to trade within the 21,800-22,200 range in the short term.
India VIX & Market Volatility
The India VIX, which measures market volatility, rose 0.5% to 13.83, reflecting moderate investor nervousness.
Global Market Influence
Wall Street Ends in the Red
- Dow Jones: -1.55%
- S&P 500: -1.22%
- Nasdaq: -0.35% (nearing correction territory)
Asian Markets: Mixed Signals
- S&P 500 Futures: +0.7%
- Japan’s Topix: +0.2%
- Australia’s S&P/ASX 200: -0.8%
- Euro Stoxx 50 Futures: -2.9%
Gold & Commodities
Gold prices declined slightly, pressured by rising US Treasury yields. Investors remain cautious about the long-term effects of US trade policies on global inflation.
Stocks Under F&O Ban
Manappuram Finance has been placed under the F&O ban as its market-wide position limit exceeded 95%, restricting further derivative trading.
Institutional Investor Activity
- Foreign Portfolio Investors (FPIs): Net sellers, withdrawing ₹3,406 crore.
- Domestic Institutional Investors (DIIs): Net buyers, investing ₹4,851 crore.
Currency & Rupee Movement
The Indian rupee initially weakened but later recovered 13 paise to close at 87.19 against the US dollar, supported by a softer dollar index and a decline in crude oil prices.
FII Derivative Positioning
FII net short positions stood at ₹1.87 lakh crore on Tuesday, remaining unchanged from the previous session.
Conclusion
Markets are expected to remain range-bound with a negative bias unless strong domestic triggers emerge. A breakout above 22,142 could improve sentiment, but failure to hold key support levels may lead to deeper corrections. Traders should stay cautious amid global uncertainty while tracking institutional activity and market trends.
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Register and Unlock NowDisclaimer: The stock price targets and analysis presented are based on publicly available information from top brokerage firms and may change over time. Always consult with your financial advisor before making any investment decisions. The opinions expressed in this article are for informational purposes only and do not constitute financial advice.
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