Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 3

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday following gains in global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 22,370 level, a premium of nearly 90 points from the Nifty futures’ previous close.

On Friday, the Indian stock market crashed, with both the benchmark indices sinking nearly 2% each.

The Sensex cracked 1,414.33 points, or 1.90%, to close at 73,198.10, while the Nifty 50 settled 420.35 points, or 1.86%, lower at 22,124.70.

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

Nifty OI Data

Nifty Open Interest (OI) data indicates strong support at 21,800 and 21,500, which suggests traders are positioning for stability around these levels. A sustained hold above 22,000 could provide temporary relief, but the broader sentiment remains cautious, said an analyst at Choice Broking.

Options data further highlights significant resistance at 22,500 and 22,800, with the highest Call Open Interest concentration. A breakout above 23,000 could trigger short covering and fresh buying, leading to a potential recovery, he added.

Nifty 50 Prediction

Nifty 50 slipped into sharp decline on February 28 and closed the day lower by 420 points. The benchmark index plunged 5.89% in February and extended its losing streak to five consecutive months, signalling sustained bearish momentum.

“A long bear candle was formed on the daily chart which is signaling a decisive downside breakout of range movement. We also observe unfilled opening downside gaps in the last few sessions which is indicating a formation of bearish runaway gaps. These unfilled down gaps are normally formed in the middle of the trend. Hence, more weakness to go for next week,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

He believes the underlying trend of Nifty 50 is sharply down and one may expect more declines in the short term.

“Having moved below the immediate support of 22,400 (20-month EMA), Nifty 50 could now slide down to the next lower support of 21,800 – 21,700 levels (swing lows of Mar-Apr 2024) in the coming week. Immediate resistance is placed around 22,300,” said Shetti.

Om Mehra, Technical Analyst, SAMCO Securities, noted that a large bearish candle on Friday reinforced the downtrend, with the broader structure displaying lower highs and lower lows, further widening the gap from key moving averages.

“The immediate support is placed at 22,000, with a stronger floor at 21,800. Although a relief rally may emerge, it is likely to be short-lived, as selling pressure could cap any recovery,” said Mehra.

According to VLA Ambala, Co-Founder, Stock Market Today, market sentiment remains weak and she advises traders to adopt a ‘sell-on-rise’ strategy.

“Nifty 50 is also showing signs of weakness, forming a bearish Marubozu candlestick pattern on the monthly and weekly charts during the last session. According to the market analysis, Nifty 50 might hover between support 22,100, 21,800, or 21,670 while resistance can be found near 22,250 and 22,300,” Ambala said.

Bank Nifty Prediction

Bank Nifty closed 399.10 points, 0.82%, at 48,344.70 on Friday, extending its losing streak to three consecutive months, with February registering a 2.51% decline.

“Bank Nifty closed negative but held above the key 47,800 support, aligned with the 100-week EMA (Exponential Moving Average) at 47,516. However, trading below the 21-day and 55-day EMAs signals weakness and selling pressure at higher levels. Immediate resistance is at 49,000, any rise near this level may invite fresh selling pressure. However, a breakout above this could push the index toward 49,600, but the broader outlook remains bearish,” said Puneet Singhania, Director at Master Trust Group.

He believes the prevailing trend favours a ‘sell on rise’ strategy, with any upward move likely facing resistance. Sustained weakness below support could accelerate downside momentum in the coming sessions.

Om Mehra highlighted that the Bank Nifty index opened with a gap down and remained under pressure throughout Friday’s session, leaving the gap unfilled — adding to the bearish undertone.

“The daily RSI remaining below 40 and a negative MACD crossover, indicates downside risk persists. The next key support stands at 47,840, however, any attempt to catch the bottom may be premature until a decisive weekly reversal signals strength,” Mehra said.

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.