Trade Setup for March 11: Nifty resistance at 22,750; Break could trigger bullish momentum

After a range-bound session with a positive bias, Nifty struggled to maintain early gains and ended lower, marking a weak start to the week amidst mixed global cues. A key resistance point stalled the upside, leading to profit booking as the day progressed.

The index initially traded in the green but succumbed to selling pressure in the last hour, with Nifty falling below the 22,500 mark as the session closed at its lowest level. The sell-off was driven by weak sentiment from Asian markets and a sharp decline in US stock futures.

Global Market Cues: US stock futures are taking a hit as Wall Street braces for a volatile trading week. Futures for the Dow Jones are down over 400 points, the S&P 500 futures have shed more than 60 points, and Nasdaq futures are down by more than 250 points.

Sectoral Performance: The broader market underperformed with the Nifty Midcap100 and Smallcap100 indices falling by 1.5% and 2%, respectively. The FMCG sector saw slight gains, but all other sectoral indices ended in the red. Oil Marketing Companies (OMCs) saw a dip due to a lack of compensation for LPG under-recoveries.

Shares of IndusInd Bank plunged by up to 5% after the Reserve Bank of India approved only a one-year extension for CEO Sumant Kathpalia, despite the board's recommendation for a three-year term.

Nifty 50 Outlook: Nagaraj Shetti from HDFC Securities notes that the short-term trend for Nifty remains positive, with potential for consolidation or a minor dip before moving upwards. A decisive move above 22,700 could open the door to further gains in the near term, with immediate support at the 22,200 level.

Rupak De of LKP Securities highlights that Nifty faced resistance at the 21 EMA on the daily chart, leading to a decline to the 22,400 level. He expects 22,400 to act as key support and believes that sentiment will likely remain stable unless Nifty falls below this level. On the upside, resistance lies at 22,750, and a break above this level could strengthen bullish momentum in the market.