The NIFTY50 index continued its downward trajectory, marking its tenth straight session in the red as selling pressure remained relentless. The benchmark index hovered around the crucial 22,000 support zone, while options data pointed to key resistance and support levels that could determine the next move.
Market Under Pressure as Global Concerns Weigh
After a gap-down opening, the NIFTY50 attempted a recovery but faced heavy selling at higher levels. The index failed to sustain any gains and remained under pressure amid global trade tensions. With 25% tariffs on Mexico and Canada and 20% duties on China set to take effect, investors remained cautious, assessing the broader impact on corporate earnings and market stability.
The SENSEX, mirroring the weakness, consolidated around the 73,000-mark, trading within a tight range on options expiry day.
Key market movements:
- NIFTY50: 22,126 (-0.09%)
- SENSEX: 73,000 support level tested
- Dow Jones: 42,520 (-1.5%)
- S&P 500: 5,778 (-1.2%)
- Nasdaq Composite: 18,285 (-0.3%)
Key Technical Levels to Watch
The NIFTY50 remains at a critical juncture, with traders closely monitoring key technical levels. The index has failed to close above the previous session’s high for 19 consecutive sessions, signaling persistent weakness.
A doji candlestick pattern formed on March 3 indicates potential indecision in the market. If the index manages to close above 22,261, a short-term rebound towards 22,500 is possible. However, a breakdown below 21,900 could accelerate selling pressure and push the index into deeper correction territory.
Options Data Hints at Range-Bound Trade
Options data for the March 6 expiry suggest that the index is consolidating between strong support and resistance zones.
| Strike Price | Call Open Interest | Put Open Interest |
|---|---|---|
| 22,500 | High | Low |
| 22,200 | Significant | Moderate |
| 22,000 | Moderate | High |
| 21,900 | Low | Significant |
Traders are watching these levels closely, as a break of either side could set the direction for the upcoming sessions.
Global Markets and Trade Tensions Impact Sentiment
Asian markets were mixed, with the Nikkei 225 inching higher by 0.10%, while the Hang Seng surged 1.13%. In contrast, Wall Street faced a sell-off after new tariffs sparked fresh concerns about economic growth. Canada responded with immediate counter-tariffs, while China imposed 15% duties on U.S. farm products, set to take effect on March 10.
The impact was felt in commodities as well, with Brent crude falling to $70.89 per barrel, its lowest level since September 11. Investors are now keeping a close watch on global policy responses and their potential market implications.
What’s Next for the NIFTY50?
The market’s direction now hinges on whether the index can hold above 22,000 or slips below 21,900. Traders should keep an eye on:
- Breakout above 22,261: Could signal a relief rally towards 22,500.
- Breakdown below 21,900: Would confirm further weakness and downside potential.
- Global market trends: Continued volatility in global markets may impact domestic sentiment.
With the market at a crossroads, traders remain cautious as they await clearer signals before taking decisive positions.
