Trade Setup for March 13: Nifty Bulls hope for CPI data boost ahead of Holi weekend
Trade Setup for March 13: Nifty Bulls hope for CPI data boost ahead of Holi weekend
On March 12, 2025, the Nifty 50 index showed volatility as investors remained cautious about the market's recovery, choosing to stay neutral ahead of the weekly expiry. Despite a positive opening, the market experienced some weakness mid-session but managed to recover later, closing with minor cuts.
Nifty 50 Performance: Closed at 22,471, down by 27 points, but well off the day's lows. The broader market showed weakness with the Nifty Midcap100 and Smallcap100 indices both declining, and the Nifty IT sector saw a 3% drop.
Sector Performance: The banking sector outperformed, with the Nifty Bank index staying positive, supported by stocks like HDFC Bank and Kotak Mahindra Bank.
IndusInd Bank: The stock experienced a sharp recovery after a 7% drop, but remains in the F&O ban, restricting new positions.
Key Levels for Nifty 50:
Support: Immediate support lies around 22,300. A decisive move below this level could signal further downside.
Resistance: On the upside, resistance is seen at 22,500/22,600. A break above 22,677 could trigger a rally toward 23,000.
Nifty Bank Outlook:
The Nifty Bank index closed at 48,056.65, showing a modest gain of 0.42%. However, the sector shows mixed momentum with some weakness in PSU banks. The immediate resistance is at 48,380, and support is at 47,700. A breakout above 48,380 could signal a pullback, while a fall below 47,700 may lead to further declines.
Inflation Data:
India's retail inflation eased to a seven-month low of 3.61% in February 2025, offering some relief to the markets. US consumer prices also increased less than expected in February, which could positively impact sentiment on March 13.
What's Next?
With the CPI data in focus and the weekly expiry ahead, Nifty bulls are hoping for the inflation figures to add some green to the market, especially with the Holi weekend approaching. Market participants will be closely watching the Nifty's ability to hold above the crucial 22,300 level.
