On the lower time frame, the stock has given a rectangle breakout. The RSI is above 60, indicating bullish momentum. The stock is also trading with gaps, so I expect these to be filled in the next few days.
IRFC: Buy at ₹123.40 | Target ₹129-132 | Stop loss ₹119
On the 15-minute timeframe, the stock has given a bullish pennant breakout. The MACD has also shown a bullish crossover, suggesting bullish momentum is likely to continue
AETHER: Buy at ₹912.70 | Target ₹960-980 | Stop loss ₹864
On the daily chart, RSI, CCI, and MFI are in the bullish zone. On the hourly chart, the stock is forming a triangle pattern. If the stock crosses ₹920, we could see a rally up to ₹960.
Market update: Nifty and Nifty Bank analysis for 7 March
After a strong two-day rally, the Indian stock market took a breather on Friday, 7 March, as indices moved sideways within a narrow range. Despite opening on a positive note, the market lacked strong follow-through momentum, reflecting investor caution at higher levels.
The market traded sideways, with limited movement as investors remained cautious. Nifty 50 edged down 0.03%, slipping 7.80 points to close at 22,552.50, while Sensex dipped by 0.01%, losing 7.51 points to settle at 74,332.09.
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Nifty Bank fell by 0.27% or 130.20 points to close at 48,497.07. Despite the decline, banking stocks showed signs of stability, indicating a moderate recovery after recent volatility.
The markets experienced a broad-based recovery, driven by strong sectoral performances. The oil & gas sector led the gains, surging 0.55%, followed by metals, which climbed 0.43%. The infra sector also saw a solid uptrend, rising 0.27% and reinforcing bullish momentum across the board.
The realty index closed with a slight dip of 1.19%, while public sector enterprises declined by 0.76% and the Midcap Select index fell by 0.65%. All other sectors performed well, sustaining the bullish sentiment and pushing the market higher.
Reliance Industries led the charge with a 3.32% surge, followed by Nestlé, which gained 1.69%. Hindalco also contributed to the positive momentum, climbing 1.51%.
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Despite the overall market strength, the financial sector lagged, with IndusInd Bank leading the decline, falling 2.25%. NTPC also faced selling pressure, dropping 2.47%, while Shriram Finance slipped 2.10%, contributing to the sector’s underperformance.
Indian stock market outlook
Dips towards the 22,450-22,400 support zone (aligned with hourly moving averages) should be seen as a buying opportunity, as the overall trend remains positive, with an upside target of 22,800. On the downside, 22,245 serves as a crucial short-term support level.
Technical indicators
On the hourly chart, the momentum indicator has triggered a negative crossover, and the contracting Bollinger Bands suggest a potential consolidation phase before the next upward move.
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On the daily chart, Nifty is trading below the 20-day moving average (DMA) at 22,748 and the 40-day exponential moving average (DEMA) at 23,009. However, the momentum indicator has triggered a positive crossover, indicating potential strength in the broader trend.
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On the hourly chart, Nifty is trading above the 20-hour moving average (HMA) at 22,458 and the 40-hour exponential moving average (HEMA) at 22,416. However, the momentum indicator has turned negative, signaling near-term weakness or consolidation.
Market breadth remained positive, with 1,809 stocks advancing and 1,103 stocks declining on the NSE.
FIIs & DIIs
The trading activities of institutional investors in the Indian equity market on 7 March were as follows:
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This data indicates that FIIs were net sellers, withdrawing ₹2,035.10 crore from the equity market, while DIIs were net buyers, injecting ₹2,320.36 crore.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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