Explanation of stock market trends on March 28

Today, the market launches the T+0 settlement cycle. This change is regarded as a major progress in the Indian
capital market. It has a direct impact on the Indian economy and stock market, and also brings short-term
fluctuations. In terms of overall performance, the three major indexes all showed bullish sentiment, rising after
the opening and trying to attack key high positions, but failed to form a clear breakthrough. Specifically, the
SENSEX index rose by 655.04 points, or 0.90%, to close at 73651.35 points; the NIFTY index increased by 203.25
points, or 0.92%, to close at 22326.90 points; BANKNIFTY rose by 338.65 points, or 0.72%, to a closing price of
47124.60 point. The entire market rose generally, led by the biotechnology industry, which rose by 5.10%,
followed by the semiconductor industry, which rose by 4.09%, and the commercial printing/forms industry was
not far behind, rising by 3.61%. These data reflect the market’s positive response to the introduction of the T+0
settlement cycle, with the market as a whole maintaining an upward trend despite the volatility.

One. Technical aspect

SENSEX is indeed moving as we predicted yesterday. Today, 30 minutes after the opening, SENSEX closed at
73449.78. This price is higher than our forecast of 73138.73, showing that the market's bullish sentiment is in
good condition. Based on this situation, we expect that the market will continue to rise to test higher pressure
points, which is consistent with our judgment of bullish sentiment.
In today's trading, SENSEX tried to break through two key points: 73809.47 and 74245.17. These two points are
important levels that we considered in our previous analysis. If successfully broken through, the upward trend of
the market will be further confirmed. However, although the market attempted to break through these key points
several times during the day, it ultimately failed due to several factors. First, although the market opened strong,
momentum began to wane in the late trading hours. Secondly, the impact of the approaching holidays also
heightened market uncertainty, which may have contributed to late-day selling sentiment. Therefore, the market
ultimately failed to effectively break through the 73809.47 point and closed below it.
At the daily level, the opening price opened sharply upward, directly stabilizing above the recent average price of
73111.17. This phenomenon clearly points to the strength of the bull market. Subsequently, the price performed
stably within 30 minutes after the opening. We mentioned in the market analysis that the price will continue to
attack upward. The subsequent market trend also proves that the prediction is correct. The price currently stops
below the resistance level of 74245.17. At the same time, A closing price below 73809.47 is a bad sign for bullish
sentiment. Because when the market continues to attack next week, it must first break through 73809.47 and
then try to break through the high point on the left again. This is a relatively large pressure for the bulls during the
day.
For the next trading day, our predictions are based on current market dynamics:
If the price can stabilize above 74245.17 points after opening, it will indicate the strength of the bull market,
indicating that the upward momentum may accelerate, and the entire market sentiment will be very positive.
If the price can close above 73809.47 points, although the bulls are relatively weak, the overall market trend is
still bullish, and the price is expected to test the resistance of 74245.17 points again.
If the price is between 73106.57 and 73809.47 points, the market will mainly show a volatile pattern with
unclear direction, and investors need to be cautious.
If the price falls below 73106.57 points, it means that a seller's market has emerged, and the price may bottom
out further to test the strength of the support below.

In yesterday's analysis, I mentioned that NIFTY has entered a repair stage after the upward trend ended. This
stage is characterized by sideways consolidation, and its structure is relatively simple, which also makes the future
breakthrough direction more clear. Yesterday, it was also predicted and mentioned that if NIFTY effectively breaks
through 22160.20 points within 30 minutes after the opening, it will be A signal that bullish market momentum is
beginning to emerge. At the same time, the positive impact of this increase in momentum on SENSEX is obvious,
and the current market trend is highly consistent with previous predictions. At the same time, the intraday
analysis reminded everyone that 22526.60 will cause pressure on the current price. Under the influence of many
aspects, we have seen a long retracement after the price tested this point. Because the current NIFTY structure
position space is large, the market trend of the next trading day will be analyzed with SENSEX as a reference.
SENSEX and NIFTY are synchronized in trend and direction, and no detailed prediction is given here.

The price of BANKNIFTY above 46892.35 30 minutes after the opening represents further
strengthening of the bulls. The overall trend is in line with our expected judgment. At the
same time, I also reminded everyone during the session that due to the special financial
attributes of BANKNIFTY, it will be more difficult to continue to break upward today.

From the daily level, the price stops at the resistance position of the early central structure of 47411.65. At the
same time, the recent trend shows the X-axis price trend, which represents the support of 46802.55 and the
resistance of 47411.65. Therefore, it is still difficult to form a bullish performance next week, which requires
further stimulation of the market and an upward breakthrough of the SENSEX and NIFTY indexes at key points. If
the price can effectively stabilize at 47411.65 30 minutes after the opening of the next trading day, it means that
the market bulls have successfully broken through, and the market buying enthusiasm is high and the bulls are
obvious. The price was above 47212.65 30 minutes after the opening. The bulls performed weakly, but they will
still test the resistance strength of 47411.65. The price is mainly volatile between 46802.55-47212.65. Traders'
wait-and-see mood may appear, and the trading volume will shrink. Below 46802.55, market sentiment is poor
and the support of 46568.20 may be tested in the short term.

One. News page

1. India’s strategy to seek access to lithium and copper resources in Chile and other countries is a smart step to
ensure that its rapidly expanding economy and energy transition efforts can be sustained. In this way, India can
not only reduce its dependence on imports and enhance energy security, but also play a more important role in
the global electric vehicle and renewable energy industries. Given that lithium and copper are integral elements
in electric vehicles and renewable energy technologies, this strategy could enhance India's position in the global
energy transition while also helping it achieve its goal of net-zero carbon emissions by 2070 . Additionally,
partnering with Argentina and possibly Australia suggests India is looking to diversify the sources of its mineral
resources to reduce any geopolitical risks. These actions could have a positive impact on the stock market.
Particularly for companies involved in mineral exploration and mining such as state-owned National Aluminum
Corporation, Hindustan Copper Corporation and the newly formed Khanij Bidesh India, their share prices are
likely to rise on these positive prospecting results and future asset acquisitions. In the long term, if India can
successfully secure foreign mineral resources, this will help enhance the stability of its manufacturing and energy
sectors, boost economic growth, and potentially attract more foreign direct investment. Additionally, as the
renewable energy and electric vehicle sectors grow, companies and supply chains related to these areas are also
likely to benefit, creating new growth drivers in the Indian stock market. However, these positive impacts may be
affected by factors such as global market dynamics, raw material price fluctuations and international relations.

2. The revision of wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
has had direct and indirect impacts on the Indian economy. First, raising rural wages can help boost spending
power in rural areas because more money flows into households, increasing demand for goods and services. This
increased spending power is likely to stimulate broader economic activity, especially in rural areas, thereby
boosting economic growth. Furthermore, by guaranteeing at least 100 days of wage employment, the program
helps reduce rural poverty and improve livelihood security, which is critical to mitigating social inequality and
promoting inclusive growth. However, such wage increases may put pressure on government finances, especially
in states with larger wage adjustments, as the government will need to find funding sources to pay these wages,
possibly through increased borrowing or adjustments to other expenditures. The impact on the Indian stock
market is more indirect. Rising rural spending power is likely to increase sales for consumer goods and services
companies, especially those with larger market shares in rural areas. As economic activity increases in rural areas,
industries directly related to the rural economy, such as agriculture, farm machinery, consumer goods, and
financial services, are likely to see share prices rise. However, the fiscal measures that the government may take
to support wage growth, such as increasing borrowing, may cause market concerns about the health of public
finances, thereby exerting certain pressure on the stock market. In the long term, if these wage adjustments can
effectively promote the development of the rural economy and increase overall consumption levels, then this will
be positive for promoting economic growth and stock market performance. However, this requires effective
government policy and management to ensure that the economic benefits brought about by wage growth can be
continuously realized, while at the same time managing fiscal pressures.

3. Subramanian’s view that the Indian economy can achieve an annual growth rate of 8% by 2047 puts forward a
positive perspective on the long-term outlook for the Indian economy. If such a growth rate is achieved, India will
significantly improve its global economic status and become a major economy. Such growth will require
continued policy reforms, strengthening domestic markets, higher consumption levels, and the creation of
significant job opportunities. Growth in the manufacturing and services sectors highlighted by Subramanian,
particularly through reforms in the land, labour, capital and logistics sectors, will be key factors in achieving this
goal. The enhancement of manufacturing industry can not only provide a large number of employment
opportunities, but also promote technological progress and innovation, thereby improving production efficiency
and international competitiveness. At the same time, the increase in domestic demand will further promote
economic growth and help India achieve its ambitious goals. For the Indian stock market, achieving the 8%
economic growth target will bring huge benefits. Long-term stable high growth will attract domestic and foreign
investors' interest in the stock market, especially in key areas such as manufacturing, banking and infrastructure
construction. As the economy grows and policy reforms deepen, corporate profits are expected to increase, which
will be directly reflected in stock prices. Furthermore, the growth potential is likely to prompt greater foreign
direct investment inflows, strengthening the depth and breadth of India's capital markets. However, this positive
scenario needs to be achieved through effective government policies, reforms to the regulatory framework and
the provision of an environment conducive to investment and innovation. Therefore, if India can implement
policies and accelerate reforms as suggested by Subramanian, the stock market will see long-term and sustained
growth, providing investors with good returns.

4. The euro's reaching parity with the dollar and the steady decline in global inflation may have mixed effects on
the Indian economy. On the one hand, the depreciation of the euro may make Indian exports to the euro zone
more competitive as the prices of Indian goods and services are relatively low in the European market. This could
be a positive factor for Indian exporters, especially those manufacturing and information technology services
companies that rely on the European market. However, on the other hand, if Europe's economy continues to
show weakness, its demand for Indian goods and services may decline, thus curbing India's export growth. In
addition, the strength of the U.S. dollar may increase India's import costs, especially oil and other U.S. dollar-
denominated commodities, thereby affecting India's trade balance and inflationary pressures. The strength of the
US dollar may also lead to capital outflows from developing markets, including India, which may put pressure on
the Indian rupee and further affect its economic stability. For Indian stocks, these global currency and economic
dynamics may create short-term volatility. The strength of the dollar and the weakness of the euro may affect the
earnings prospects of Indian companies with significant operations in the United States and Europe, especially
those technology and pharmaceutical companies with significant revenue in these markets. In the short term, this
could lead investors to revalue these companies' earnings expectations, affecting their stock prices. In the longer
term, if global economic conditions lead to capital outflows from India, this could weigh on the overall equity
market, especially if foreign investors choose to withdraw capital from riskier markets. However, it could also be
an opportunity for Indian companies that can take advantage of the changing global economic environment,
increase market share and improve efficiency.

5. Preconditions put forward by Indian Trade Minister Piyush Goyal that China ensure that its economy is open,
transparent and adheres to World Trade Organization (WTO) rules for India to join the trading bloc that includes
China, = such participation is possible Promote trade and investment flows between India and China and within
the wider Asian region, further integrating India into the regional economy. A more open and transparent trading
environment can provide new market opportunities for Indian businesses, especially in the manufacturing,
services and technology sectors. In addition, the commitment to comply with WTO rules can provide Indian
companies with a more stable and predictable international trade law framework, help reduce trade barriers, and
promote more efficient supply chain management and cost-effectiveness. Such engagement may also encourage
foreign direct investment, bringing technology transfer and new capital infusions to the Indian economy,
supporting long-term growth. For Indian stocks, this prospect of openness and participation in regional trade
blocs could provide an immediate boost to sentiment. In particular, companies with close business dealings with
China and the wider Asian market are likely to benefit from expanded market access and enhanced trade links.
Investors are likely to show greater interest in these companies, anticipating that they will benefit from broader
markets and potential cost advantages. Furthermore, international investors are likely to show greater interest in
the Indian market as India's economic integration and trade liberalization are seen as catalysts for growth and
profit growth. However, the market is also likely to remain cautious about policy execution and actual progress in
this process, especially given the historical tensions and trade frictions between China and India. In the long term,
if India can successfully build closer trade links with China and other Asian economies, this will have a positive
impact on the Indian stock market and promote growth and prosperity across industries.