Market recap: Nifty 50’s performance on 3 March
The Nifty 50, India’s benchmark index, ended the session on a flat note at 22,119 despite strong global cues. The index opened on a positive note at 22,194 and surged to an intraday high of 22,260 before swiftly erasing its gains. It tested the psychological support level of 22,000 but held above it, eventually closing at 22,119. This price action resulted in the formation of a bearish candlestick on the daily chart. Among sectors, BFSI stocks underperformed, while all other major indices closed in the green. The market breadth remained weak, with the advance-decline ratio at 1:2, indicating that decliners outnumbered advancers.
From a technical perspective, the index tested the 22,000 psychological level. The 14-day relative strength index (RSI) has reached the oversold region and is currently positioned around 22. Additionally, the moving average convergence divergence (MACD) indicator is trending negatively below the zero line.
According to O’Neil’s methodology of market direction, on 21 February, we shifted the market status to a Downtrend, as the Nifty 50 breached its recent correction low of 22,725. Looking forward, we will shift the market to a Rally Attempt when the Nifty 50 closes in the green for the first time or closes in the upper half of the day’s range and stays above that low for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend.
The overall market sentiment remains bearish, with Nifty 50 trading under a negative bias. Looking ahead, the index has immediate support at 22,000–21,800. A fall below 21,800 may lead the index towards 21,500 levels. On the flip side, if the index manages to sustain above 22,000, it could trade within a consolidation range of 22,000–22,450 in the near term.
How did the Nifty Bank perform?
On 3 March, the Nifty Bank opened on a positive note. However, the index soon exhibited volatile movements. It formed a bearish engulfing candle on the daily chart, indicating a negative bias. During the session, the Nifty Bank breached its first support level of 48,000 on an intraday basis but managed to close above this critical level. The index opened at 48,478.60, traded within a range of 48,574.70–47,841.30, and eventually closed at 48,114.30, reflecting cautious market sentiment.
The 14-day RSI has been moving downward and is currently positioned around 35–36. Meanwhile, the MACD is trading with a negative crossover and remains below its central line, indicating continued weakness in momentum.
According to O’Neil’s methodology of market direction, market status has been downgraded to a Downtrend from an Uptrend Under Pressure yesterday. The distribution day count has increased to seven, and it retested its correction low of 47,898.35. Looking forward, the market status will be shifted to a Rally Attempt when the Nifty closes in the green or in the upper half of the day’s range and stays above that low for three consecutive sessions. A follow-through day will then be required to confirm an Uptrend, focusing on stocks breaking out of early-stage bases with strong relative strength and accumulation.
This major sectoral index is trending below all its key moving averages with a negative bias in the broader range of 47,500–50,000. A breakout or breakdown on either side may lead the index toward the same direction in the coming days. The immediate strong supports are placed in the range of 47,800, followed by 47,500, i.e., the 100-week moving average (WMA).
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