Bearish momentum indicators, along with the continuation of the lower high–lower low structure and the VIX sustaining above 21, signal further weakness. Experts expect the benchmark Nifty 50 to breach the 23,500 support and slide toward 23,000 in the upcoming sessions.
The market is expected to continue to face risk-off sentiment amid geopolitical tensions. Below are some short-term trading ideas to consider.
Bears seem to be keeping tight control over the market in the upcoming sessions, possibly pushing the Nifty 50 below the immediate support of 23,500 and signalling a major risk for the 23,200–23,000 zone. Notably, 23,000 has the maximum Put open interest.
The weekly options data suggested that 23,500 is expected to be immediate support for the Nifty 50, as below it 23,000 is likely to be a major support, both of which have maximum Put open interest. However, 23,700 and 24,000 are expected to be hurdles.
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If the Nifty 50 decisively breaks 23,700, Monday's low, a fall toward 23,500–23,400 can't be ruled out. However, a convincing move above 24,300 can drive the index toward 24,500–24,700.
The market may remain range-bound with a negative bias until it closes above Monday's bearish gap. Below are some short-term trading ideas to consider.
Momentum indicators maintained sell signals, while the narrowing gap between the 50- and 200-day EMAs increased the possibility of a move toward a death cross, signalling bears having the upper hand.
The weekly options data indicated that 23,500, which has the maximum Put open interest, is expected to act as support for the Nifty 50, while resistance is placed in the 24,000–24,300 range, which holds the maximum Call open interest.
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While Bank Nifty fell more than 2 percent today, the weakness in financial stocks dragged benchmark indices Sensex and Nifty lower. Analysts said the banking index is witnessing some consolidation after Tuesday’s rebound.
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According to experts, a follow-up rally is needed in the upcoming sessions toward the immediate hurdle of 24,400–24,500, followed by the 24,850–25,000 zone. Until then, consolidation with range-bound trading may be seen, with immediate support at 24,000, followed by 23,700,
Stocks to Watch, 11 March: Stocks like Infosys, Waaree Renewable Technologies, Arvind SmartSpaces, Waaree Energies, Central Bank of India, Hindustan Zinc, Adani Enterprises, SEDEMAC Mechatronics, HG Infra Engineering, Polycab India, InterGlobe Aviation, and Eicher Motors will be in focus on March 11
Strong follow-up buying interest is required for a further Nifty uptrend. If that comes true in the next few sessions, the 24,300–24,500 zone is expected to act as an immediate crucial resistance for the Nifty, followed by 24,700. On the downside, the immediate key support is placed at 24,000, according to experts.
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