Pre-market comment for Wednesday March 4 by Aakash Shah, Technical Research Analyst, Choice Broking
Below the Pre-market comment for Wednesday March 4 by Aakash Shah, Technical Research Analyst, Choice Broking
The NIFTY 50 witnessed a sharp decline in the previous session. After opening with a gap-down of approximately 500 points, the index staged an initial recovery, climbing to an intraday high of 25,989.25. However, persistent selling pressure through the latter half of the session dragged it to a low of 24,603.50, before it settled at 24,865.70, reflecting sustained bearish sentiment. Technically, the 24,900–25,000 zone now serves as a crucial resistance band, while the 24,400–24,300 range remains a key support area. The Relative Strength Index (RSI) at 35.48 signals near-oversold conditions accompanied by strong negative momentum.
Similarly, the NIFTY Bank opened weak at 59,148 but recovered during early trade to touch an intraday high of 60,177.5. The rebound proved short-lived, as aggressive selling pressure led to a sharp decline of nearly 830 points, underscoring heavy profit booking and a pronounced bearish bias. The index eventually closed at 59,839.65, down 689.35 points, reaffirming ongoing weakness. On the technical front, resistance is placed in the 59,900–60,000 zone, while immediate support is seen around 59,000–58,700. The RSI reading of 44.66 reflects bearish momentum, although the index has not yet entered oversold territory.
Institutional flows remained divergent. Foreign Institutional Investors (FIIs) extended their selling for a third consecutive session on March 2, offloading equities worth Rs 3,295 crore. In contrast, Domestic Institutional Investors (DIIs) maintained their buying momentum for the fifth straight session, purchasing equities worth over Rs 8,593 crore.
Amid persistent global uncertainties and elevated volatility, market participants are advised to maintain discipline and adopt a selective approach, focusing on fundamentally strong stocks during corrective phases. Fresh long positions should ideally be considered only after a decisive and sustained breakout above the 25,000 mark on the Nifty, which would signal improving sentiment and confirm the development of a stronger bullish structure.
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