Nifty, Sensex trim gains to end flat; investors eye global indices for cues

Benchmark indices the Nifty and the Sensex trimmed opening gains to close marginally higher on March 4 on buying in energy and infra names. Tracking gains in the US and Asian markets, the Sensex closed 66.14 points or 0.09 percent up at 73,872, and the Nifty ended 27.20 points or 0.12 percent higher at 22,405.

About 1,350 shares advanced, 2,462 declined, and 120 were unchanged. In the broader market, indices closed mixed. The BSE midcap index ended marginally higher and the BSE smallcap closed in the red.

In the absence of any major event, market participants will continue to take cues from the global indices, Federal Reserve boss Jerome Powell’s congressional testimony and China’s National People’s Congress.

The US' tech-heavy index Nasdaq Composite touched a fresh record high on March 1 after over two years and that may provide the needed trigger for an up move in IT counters in India as well, said analysts.

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Fundamental view

"Amid all positivity, the price action in the broader indices shows indecisiveness thus traders should maintain extra caution in midcap and smallcap space and maintain strict stops in the existing positions," said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.

Technical view

The Nifty commenced the week with a consolidated move, resulting in the formation of a Doji candle on the daily chart. Despite this, the overall sentiment remains bullish, said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.

"A decisive break above 22,440 is anticipated to intensify the momentum, targeting 22,700 on the upside. On the downside, support is established at 22,200, presenting buying opportunities on any pullbacks towards this level," he said.

The Bank Nifty index demonstrated resilience by maintaining strength and holding above the crucial support level of 47,000.

"The index remains in a buy mode, with a potential to surpass its all-time high levels in the near term. Immediate resistance is positioned at 47,500, and a breakthrough above this level is anticipated to accelerate the momentum towards new lifetime highs," Shah said.

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