Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 5

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday tracking weak global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 22,121 level, a discount of nearly 70 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market ended lower, with the benchmark Nifty 50 falling for the tenth consecutive session.

The Sensex declined 0.13% to close at 72,989.93, while the Nifty 50 settled 36.65 points, or 0.17%, lower at 22,082.65.

Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:

Sensex Prediction

“Sensex is trading near the key support zones 72,800 and 72,300. If the index recovers sharply after touching the lows of 72,300, then we may see a strong reversal of the recent sell-off seen from the highs of 82,300. A close below 72,300 will be negative for the market as in that case the chances of touching 71,500 would become bright,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

According to him, the strategy should be to buy selective stocks at current levels and buy more on dips with a medium-term outlook. Resistance levels for Sensex will be at 73,400 and 74,300.

Nifty OI Data

The derivatives market continues to exhibit a bearish tilt, with call writers maintaining the upper hand over put sellers, reflecting a cautious approach.

“The significant open interest build-up at the 22,500-call strike (1.23 crore contracts) establishes a strong resistance level. On the other hand, substantial put accumulation at the 21,500 strike (93.56 lakh contracts) reinforces this zone as a sturdy support base. The 22,200 – 22,500 range remains under intense call writing pressure, while a shift in put writing to lower strikes accentuates the bearish undertone,” said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

The Put-Call Ratio (PCR) has risen from 0.71 to 0.79, underscoring the prevailing negative sentiment in the market. Furthermore, the Max Pain level at 22,300 indicates that despite the heightened volatility, bulls might attempt to absorb declines in the near term, he added.

Nifty 50 Prediction

Nifty 50 shifted into a smart upside recovery from the lows on March 4 and closed the day slightly lower with a recovery note.

“A reasonable green candle was formed on the daily chart at the lows, which is indicating a formation of a bullish meeting line type candle pattern (not a classical one). This is a positive signal and further upside from here could confirm the short term bottom reversal pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the selling momentum seems to have started to decrease near the psychological support of 22,000 mark. A sustainable move above the immediate hurdle of 22,260 could open further upside bounce in the market. Immediate support is placed at 21,950 levels, Shetti added.

Om Mehra, Technical analyst, SAMCO Securities, noted that the Nifty 50 index breached the 22,000 level, extending its downward trajectory on the daily chart.

“However, market breadth showed a marginal improvement during the session. The daily RSI remains in the extreme oversold zone, suggesting the possibility of a strong pullback, though the timing remains uncertain. On the downside, the next support levels are positioned at 21,900 and 21,840, while resistance stands at 22,250, followed by 22,400,” Mehra said.

VLA Ambala, Co-Founder of Stock Market Today, said that the Nifty 50 formed a Bullish Belt Hold candlestick pattern, while its RSI stood at 22 on the daily chart in the last session.

“Nifty 50 index’s PE ratio currently stands at 19.70 compared to its five-year low of 17.20 and high of 42, making the valuation favorable for long-term investors. Amid these market situations, Nifty can hover for support near 22,000 and 21,870, while resistance can be found near 22,190 and 22,300,” Ambala said.

Bank Nifty Prediction

Bank Nifty index outperformed the frontliners and ended 130.90 points, or 0.27%, higher at 48,245.20 on Tuesday.

“On the daily chart, the Bank Nifty index is exhibiting a triple-bottom formation, indicating a crucial inflection point. However, the 9 EMA (Exponential Moving Average), positioned at 48,800, serves as an immediate hurdle. Unless this level is decisively breached, any short-term intraday pullback may lack momentum,” said Om Mehra.

The support for Bank Nifty remains firm at 47,800, while market conditions are expected to stay choppy over the next few sessions unless a clear reversal signal emerges, he added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.