The Indian markets saw significant profitbooking on March 26 and the Asian cues this morning are far from encouraging. The overnight developments in terms of US tariffs is weighing on sentiment across markets. The US President Donald Trump introduced 25% tariff on imported cars and light trucks starting next week. Experts say that 23,400 is a crucial level for the Nifty on the downside.
FIIs continue to buy for 5th consecutive day indicating that they are not too concerned about the tariffs. However, the market did see a fair bit of profitbooking. According to Nuvama’s Index Observations, “Today is the last trading day for any tax adjustment to be done in the portfolio for the current fiscal which could allow volatility to remain elevated. An initial dip near 23300 before resumption of movement towards 24000 cannot be ruled out.”
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Here are some expert takes on the key Nifty levels to watch out for now-
What’s the next stop for Nifty, Sensex?
Shrikant Chouhan, Head Equity Research, Kotak Securities explained that the Nifty had formed a bearish candle on the daily charts, which supports further weakness from the current levels, “We believe, as long as the market is trading below 23,500/77400, the weak sentiment is likely to continue. On the downside, it may retest 23,400-23,330/77000-76800 levels. On the other hand, if it moves above 23,500/77400, the sentiment may change, and the market may bounce back to 23700-23800/78000-78300. Contra traders can take long positions near 23,330/76800 with a strict stop loss at 23,300/76650 on a closing basis.”
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According to Anand James, Chief Market Strategist, Geojit Investments, “The evening star candlestick pattern that we anticipated yesterday, completed the formation, signalling reversal. We had lined up 23300 as the first objective yesterday, which should remain in focus today as well. That said, inability to slip beyond 23300 or an outright swing back above 23500 without the decline could signal an early end to the reversal. The odds for the same are low today though.”
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