Nifty second worst performing index among global peers

Nifty has been the worst performing index among major global indices, barring the Russian Index (RTSI), in the last one month. Lack of fresh triggers post Budget, mixed view on future rate cuts, and tight liquidity in March led traders to book profits. Also, the market is cautious before the earnings season given that the previous quarter results were below expectations and little has changed since then.

"We have seen that Indian traders, especially HNIs, have not been taking big positions in the market given that it is financial year ending," said Shubham Agarwal, head of quantitative research at Motilal Oswal. "According to our statistical models, Nifty is unlikely to see significant downside from here but may consolidate around these levels for the next one month with maximum downside of 8,450-8,500."

Alex Mathews, head of research at Geojit BNP Paribas holds similar views. "Although the Nifty has remained weak over the last few weeks,we expect things to improve after the F&O expiry for March. There is a strong support at 8,514 which is the 100-day moving average for Nifty and a psychological support at 8,500, which if broken could lead to further selling."