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NIFTY50 defends 22,000, Metal stocks shine

NIFTY50 defends 22,000, Metal stocks shine

Upstox

2 min read • Updated: March 18, 2024, 6:56 PM

Summary

Following the open interest build-up, call traders moved aggressively at the 22,200 strike, making it immediate resistance for the NIFTY50. Put writers added fresh OI at the 21,850 strike, making it a support level.

Both the NIFTY50 and SENSEX gained 0.1% to end the day flat at 22,055 and 72,748 respectively.

Markets started the week on a subdued note, trading in a narrow range ahead of the U.S. Federal Reserve meeting later this week. Both the NIFTY50 and SENSEX gained 0.1% to end the day flat at 22,055 and 72,748 respectively.

Broader markets extended their weakness and closed lower. The NIFTY Midcap 100 declined 0.3%, while the Smallcap 100 index slipped 0.5%.

Supporting sectors: Metals (+2.4%) and Auto (+1.2%) advanced the most.
Selling pressure: IT (-1.6%) and FMCG (-0.4%) were the top laggards.

The NIFTY 50 continued to trade sideways on the daily chart, consolidating between its 20 and 50-day moving averages within a tight 200-point range. With the India VIX (Volatility Index) surging 7% intraday before retreating, traders may want to monitor price action near the key support level of the 50-DMA. Experts anticipate intraday volatility to rise ahead of the U.S. Federal Reserve meeting, which could lead to a sudden spike in option premiums. Immediate resistance for the NIFTY 50 is seen at 22,250.

Key highlights of the day:

🔥Shares of Adani Group fell on Monday after reports emerged of a U.S. investigation into possible bribery. Adani Enterprises fell 5% intraday, but recovered most of its losses to close 0.7% lower.

⚒️Metal stocks surged after China reported stronger than expected industrial production growth for January and February. Tata Steel, Jindal Steel and SAIL all gained between 3% and 5%.

🖥️Coforge fell over 6% after the company's board approved raising ₹3,200 crore through a QIP.