On Monday afternoon, the U.S. stock market closed mostly higher as investors welcomed signs of stability in the banking sector. However, concerns about potential credit issues and further problems remained, and a decline in technology-related stocks limited the day’s gains. The market appeared to be influenced by the competing forces of banks and tech stocks.
One piece of news that helped underpin sentiment was an agreement by First Citizens Bancshares Inc. to purchase the deposits and loans of Silicon Valley Bank, which had failed. This development boosted confidence, and as a result, shares of European banks stabilized.
Meanwhile, in Asia-Pacific markets, there were signs that investor fears about the recent banking turmoil were easing, as market activity was higher on Tuesday.
Switching to India, Nifty closed positively on March 27 after two days of losses, although it ended much lower than its intra-day high. The index saw a last-hour sell-off and failed to hold on to its intra-day gains. In the near term, the 16747-16828 band could provide support, while the 17107-17145 range could offer resistance.
The mood in Indian markets during the holiday-shortened week and ahead of the fiscal year-end appears to be cautious, with many investors looking to reduce positions, especially in the broader market, and take tax losses.