Mumbai, March 29, 2025: The Indian benchmark indices opened on a cautious note on Friday, influenced by weak global cues. After initial volatility, Nifty index experienced profit booking and settled the day on a negative note at 23,519. Meanwhile, the volatility index, India VIX, cooled off by 4.37% to 12.72, signalling a decline in market volatility.

Global sentiments remained weak, which reflected in Indian markets today. On the last trading session of the month, Nifty opened on a muted note at 23,600, marked an intraday high of 23,649, but eventually gave up its gains to hit a low of 23,451. Among sectors, Consumer Goods, Financial Services, Oil & Gas, and Banks showed resilience, while weakness was observed in Media, IT, Automobiles, and Pharma. The broader market was slightly positive, with small-cap and mid-cap stocks showing some strength.

From a technical perspective, Nifty respected the 100-Days Exponential Moving Average (100-DEMA) support near 23,400 and formed a red candle on the daily chart. However, on the weekly scale, the index formed a doji candle, indicating uncertainty. The index continues to face resistance in the 23,800–23,810 zone, and a decisive move above 23,810 could extend the rally towards 24,000–24,080, where the 200-Day Simple Moving Average (200-DSMA) is positioned. On the flip side, sustaining below 23,400 could lead to further weakness towards 23,200-23,000 levels. Traders should monitor these levels for potential trading opportunities.

Similarly, the Bank Nifty index opened on a flat note but after initial dip index witnessed recovery and settled the day on a flat note at 51,565. On the daily chart, Bank Nifty formed a small red candle, while on the weekly scale, it registered a green candle, reflecting underlying strength. The index continues to hold above the 200-Days Simple Moving Average (200-DSMA), reinforcing a positive outlook. On the upside, 51,850 and 52,000 are key resistance levels, and a sustained move above 52,000 could trigger further upside. Traders should maintain a "buy on dips" strategy for Bank Nifty as long as index stays above the 200-DSMA support of 51,000."

On the derivatives front, 86 stocks advanced while 131 declined. Open interest spurts were seen in BSE, Titagarh, NHPC, Ramco Cements, and Patanjali. The top long buildups were observed in HUDCO, NHPC, DMart, ONGC, and BSE, whereas short buildups were recorded in Tata Elxsi, ICICI Prudential, UPL, LTIMindtree, and M&M Financial.

For Nifty, the highest open interest on the call side was at 24,500 and 25,400, while on the put side, significant open interest was seen at 23,500 and 22,500. Overall, the market witnessed heightened volatility, with Nifty experiencing sharp movements on both sides.

With Inputs from:

• Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
• Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity – Ashika Stock Broking.