Last week, Nifty declined 420 points after the U.S. President Donald Trump announced an additional 10% tariff on China, and 25% tariffs on Canada and Mexico, triggering global trade war concerns among investors. The index was trading within a narrow range of 22,500-22,800 during a holiday-shortened week and fell sharply on Friday, closing around 22,125. February marked the fifth consecutive monthly decline for the index. On the sectoral front, all the sectoral indices closed lower. IT (-7.96%), PSE (-5.90%), and Realty (-5.52%) lost the most on a weekly basis.
The overall market sentiment is negative. Looking ahead, the index is trading with a negative bias, and immediate support is placed around 22,000-21,800, i.e., around the 100-WMA.
On February 21, the market shifted to a Downtrend from a Rally Attempt, as Nifty breached its recent correction low of 22,725. Protecting capital by staying on the sidelines is better than taking risks. Although buying stocks on pullbacks during a market correction is tempting, one should wait for market conditions to improve and avoid catching a falling knife.
Looking forward, the market will shift to a Rally Attempt when Nifty closes in the green for the first time or closes in the upper half of the day's range and stays above that low for three straight sessions. A follow-through day is essential before the market status can be transitioned back to a Confirmed Uptrend.
Key News:
Mahindra & Mahindra reported a 15% YoY increase in its total sales for February 2025 to 83,702 units.
Tata Motors reported an 8% YoY decline in its domestic and international sales at 79,344 units in February.
Maruti Suzuki India reported a 1% YoY increase from 1.97 lakh units.
Glenmark recalls 1.5 million bottles of ADHD medication in US.
Ujjivan Small Finance Bank has finalised the sale of its stressed loan portfolio, which had an outstanding balance of Rs. 364.51 crore, to an Asset Reconstruction Company (ARC) for Rs. 34.26 crore.

Stocks to Watch: Avanti Feeds, Kotak Mahindra Bank(Nse), Maruti Suzuki India, Hdfc Bank, Icici Bank, Abbott India, Bajaj Finserv and view more.

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