Weakness in Global Markets Puts Pressure on Indian Stock Market. FIIs sell ₹4,788 crore, while DIIs buy ₹8,790 crore. Investors eyeing Nifty 22,000 and Sensex 72,800.
Stock Market Today: Weak signals from global markets may lead to a decline in the Indian stock market on Tuesday (March 4). At 8 am, GIFT Nifty futures were trading at 22,094, down 33 points, indicating a sluggish market mood.
Monday's Market Performance
On Monday (March 3), the domestic stock market closed with a marginal decline.
- Sensex closed at 73,086, down 112 points or 0.15%.
- Nifty 50 closed at 22,119, down 5 points or 0.02%.
- In the broader market, Nifty Midcap 100 gained 0.14%, while Nifty Smallcap 100 declined by 0.27%.
FII-DII Investment Trend
Foreign Institutional Investors (FIIs) made net sales of ₹4,788.29 crore on Monday, putting pressure on the market. Domestic Institutional Investors (DIIs), however, purchased shares worth ₹8,790.70 crore, offering some support to the market.
What could be the market direction today?
According to Srikanth Chouhan, Head of Equity Research at Kotak Securities:
- 22,000 for Nifty and 72,800 for Sensex will be key support levels.
- The 22,200/73,400 level will act as resistance.
- If the market crosses 22,200/73,400, a rally to 22,250-22,300 / 73,500-73,800 can be seen.
- In case of a decline, if the market falls below 22,000/72,800, investors may exit their long positions.
Global Market Scenario
US stock markets saw a decline on Monday, which could put pressure on the Indian market.
- S&P 500 fell by 1.76%.
- Dow Jones fell by 1.48%.
- Nasdaq slipped by 2.64%, mainly due to an over 8% decline in Nvidia shares.
Impact of International Factors
Rising tensions over tariffs between the US and Canada have increased uncertainty in the global market. US President Donald Trump decided to increase tariffs on Canada and Mexico from Tuesday, which could impact the international market. In response, Canada announced retaliatory tariffs on the US with immediate effect.
What should be the investors' strategy?
1. Pay attention to support and resistance levels – Trade keeping in mind the crucial levels of Nifty and Sensex.
2. Keep an eye on global market trends – The movement of the US and other major markets can affect the Indian market.
3. Monitor FII and DII trends – If FII selling continues, further pressure may be seen in the market.
4. Long-term investors need not panic – If the market falls, it may present an opportunity to invest in b companies.
