Trade Setup for March 2: Nifty support shifts to 24,700 as downtrend signals persist

Indian equity markets ended February on a weak note, with benchmark indices extending losses amid broad-based selling pressure. Technical indicators suggest the negative bias may continue in the near term, with Nifty’s key support now seen at 24,700 and resistance capped at 25,400, according to market analysts.

Indian equity benchmarks closed sharply lower in the final trading session of February, as sustained selling across most sectors dragged the markets down, sparing only IT stocks. Analysts cautioned that the prevailing downtrend could extend into the coming sessions amid weak technical signals and uncertain global cues.

A long bearish candle has formed on the Nifty’s daily chart, indicating a decisive breakdown from a descending triangle pattern, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. He added that the crucial upside gap created on February 3 has nearly been filled around the 25,100 level, which is technically a negative development.

Following the breach of earlier support zones, the immediate support for the Nifty has now shifted lower to the 24,700 level. On the upside, analysts see strong resistance around 25,400, which could cap any short-term recovery attempts.

Looking ahead, Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services, said Indian equities are likely to trade sideways with a cautious bias in the week ahead, amid continued global volatility. Bajaj Broking Research echoed similar views, noting that market volatility is expected to remain elevated due to uncertain global cues.

Bank Nifty Outlook

The Bank Nifty index is expected to remain range-bound in the near term, according to analysts at Bajaj Broking. The index is likely to trade within the 60,000–61,750 range, with immediate support seen between 60,200 and 60,000.

Technically, Bank Nifty has formed a bearish candle with a lower high and lower low, indicating profit booking at higher levels. Analysts warned that volatility may persist in the banking space as global uncertainties continue to weigh on investor sentiment.

Market Recap

On Friday, benchmark indices ended sharply lower, with the Nifty 50 slipping below the 25,200 mark and decisively breaking the 25,300 support level. The Sensex tumbled over 1,000 points, or nearly 1.3%, during the session.

Heavyweights such as ICICI Bank, HDFC Bank, and Bharti Airtel emerged as the top drags on the Nifty, while broader market indices also witnessed sharp declines, reflecting widespread risk aversion among investors.