US-Iran Conflict Escalation: Key Market Factors to Watch Ahead of the March 4 Market Open

Market Update: Nifty 50 and Bank Nifty Performance

On March 2, the Nifty 50 declined by 1.24% following a gap-down opening, extending its downtrend for the second consecutive session. The index's sharp decline was driven by intensified Middle East tensions, subdued momentum, weak technical indicators, and a US-Iran war-led sell-off across global markets.

Key Levels for Nifty 50

• Resistance based on pivot points: 24,967, 25,056, and 25,205
• Support based on pivot points: 24,672, 24,581, and 24,434
• Special Formation: The Nifty 50 formed a green candle due to buying interest at lower levels, but a bearish gap of 152 points after a big gap-down opening indicates continued bearish momentum.

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Technical Analysis

• The RSI dropped to 35.48, and the Stochastic RSI declined to 4.6, while the MACD sustained well below the zero line with a long red histogram.
• The index traded well below the 200-day EMA and almost reached the Union Budget day's low intraday.

Nifty Call Options Data

• Maximum Call open interest was seen at the 25,500 strike (with 45.97 lakh contracts).
• Maximum Call writing was observed at the 25,000 strike, which saw an addition of 34.54 lakh contracts.

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Nifty Put Options Data

• The 24,500 strike holds the maximum Put open interest (with 33.13 lakh contracts), which can act as a key support level for the Nifty in the short term.
• Maximum Put writing was placed at the 24,500 strike, which saw an addition of 18.9 lakh contracts.

Key Levels for Bank Nifty

• Resistance based on pivot points: 60,115, 60,358, and 60,751
• Support based on pivot points: 59,328, 59,085, and 58,692
• Resistance based on Fibonacci retracement: 60,151, 60,460
• Support based on Fibonacci retracement: 59,308, 58,637

Technical Analysis

• The Bank Nifty also mirrored the Nifty 50 and formed a bullish candle due to recovery from the day's low, but a bearish gap of 261 points after the gap-down opening indicates sustained weakness.
• The index fell below the 50-day EMA but still held above the 100-day EMA (59,056), which is the next immediate support.

Bank Nifty Call Options Data

• Maximum Call open interest was seen at the 61,000 strike, with 12.71 lakh contracts.
• Maximum Call writing was observed at the 60,000 strike, which saw an addition of 2.16 lakh contracts.

Bank Nifty Put Options Data

• The 61,000 strike holds the maximum Put open interest (with 10.93 lakh contracts), which can act as a key level for the index.
• Maximum Put writing was placed at the 59,500 strike, which added 92,040 contracts.