It’s a sea of red across the Asian markets and the tariff-led uncertainty is weighing heavily on market sentiment. The Nifty has so far defended the 22,000 support level in terms of closing levels. However, the worry is how will the Nifty trend today? Will it crack below this psychologically important support level?
According to the analysts, it is highly likely that Nifty 50 may breach below 22,000 today. The first support level is placed at 22,000, if it cracks below that, then the next support level is placed at 21,850.
For a flip side, if it happens, the first resistance is placed at 22,200 and the second at 22,300 zone. The most it can stretch is towards the 22,400 level. “There is a time reversal window between now and Friday, so if we see some bullish price evidence occurring this week, it will warrant attention,” said Akshay Chinchalkar, Head of Research at Axis Securities.
ALSO READHow will markets open today? US tariffs, FII outflows and 6 other important cues ahead of trading on March 4
“For day traders, the 22,000 (level) acts as a sacrosanct support zone. As long as the market is trading above this level, the pullback formation is likely to continue,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Mehta Equities’ senior vice president of research, Prashanth Tapse, reiterated that Nifty’s immediate support lies at 21,920 level, while resistance is at 22,351 level.
On March 03, the markets started on a higher note but soon gave up all the gains. The Nifty 50 went as low as 22,004.70. However, the Nifty 50 was able to defend the crucial level of 22,000. The Nifty 50 has shed almost 16% from its September peak.
The Nifty completed a 9-day loss streak that was last seen on May 13, 2019. “Back then, the market started a recovery on the immediately following the day and advanced 9% over the next fortnight. While the macros don’t justify such an advance to recur, it’s worth noting that sentiment is far more depressed currently,” added Chinchalkar.
» Read More
