Stock market opens flat post-Holi, Nifty edges down as investors eye global trends

Mumbai (Maharashtra) [India], March 26 : The stock market kicked off the trading day on a subdued note, opening marginally in the red following the Holi festivities.
As the trading bell rang on Tuesday morning, stock indices reflected a flat sentiment, with the benchmark Sensex down by 234.50 points, opening at 72,597.44, while the Nifty slipped 47.95 points to commence at 22,048.80.
Among the Nifty companies, 13 advanced while 37 declined in early trade.
Notable gainers included HDFC Life, Adani Ports, Tata Motors, Hero MotoCorp, and Bajaj Auto, while Maruti, SABI Life, Kotak Bank, Infosys, and Hindustan Unilever led the losses.
The truncated trading week, coupled with looming factors such as the March F&O expiry and fiscal year-end, is expected to keep trading volumes subdued while volatility may persist.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Resistance levels for the market are noted around 22,200-22,300, with a breakthrough potentially triggering significant upward movement."
He added, "Additionally, on the weekly chart, the Nifty formed a small positive candle, with support around the 10-week Exponential Moving Average (EMA) indicating a favourable short-term trend outlook, with potential for the Nifty to reach new all-time highs around 22,550 levels."
Options data reflects some improvement, with the put-to-call ratio rising to 1.23 from oversold levels. However, foreign institutional investors (FIIs) maintain a high level of short exposure in index futures, currently at 65 per cent, suggesting potential for a short-covering rally.
In global markets, Asian equities showed mixed performance following a pullback in US stocks. Investors remain cautious amid concerns about a disconnect between earnings expectations and share prices, with sentiment perceived as stretched and a US equity market pullback deemed overdue.
Despite these concerns, optimism persists, fueled by healthy US economic data and expectations of Fed rate cuts, driving the S&P 500 up nearly 10 percent this year.
Market participants remain watchful for further developments in both domestic and global markets, with trading activity expected to be influenced by macroeconomic factors and geopolitical events in the days ahead.