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Nifty on Tuesday ended 9 points lower to form back-to-back Doji patterns on the daily chart, typically indicating a pause before the next move. The short-term trend of the Nifty remains positive. Though Nifty is placed at the crucial overhead resistance around 22,500 levels, there is no confirmation of any reversal pattern unfolding at the highs. A decisive move above the hurdle of 22,500-22,600 levels could open more upside in the near term. Immediate support is at 22,350 levels, said Nagaraj Shetti of HDFC Securities.Analysis of the Open Interest (OI) data highlights the highest OI on the call side at the 22,700 strike price, followed by the 22,800 strike price. On the put side, the highest OI was observed at the 22,300 strike price.What should traders do? Here’s what analysts said:Rupak De, LKP SecuritiesThe sentiment remains positive, with the Nifty closing above the important moving average. The momentum also remains positive, as indicated by the RSI in a bullish crossover. Over the short term, the trend is positive, with a potential to reach 22,650-22,700. Support is positioned at 22,350-22,300 on the lower end.Jatin Gedia, SharekhanOn the daily charts, we can observe that Nifty is in the process of cooling off after the sharp run-up in the previous couple of trading sessions. The zone of 22,400 – 22,350 is the crucial support zone and dips towards these zones should be used as a buying opportunity. The hourly momentum indicator has a negative crossover, which is a ‘sell’ signal and also suggests that there could be some more consolidation before the uptrend resumes. Overall, this dip should be used as a buying opportunity.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

India has asked global and domestic trade houses to avoid buying new-season wheat from local farmers to help the government-backed Food Corporation of India (FCI) procure large quantities to shore up its depleting reserves, sources said. India, the world's biggest wheat consumer and grower after China, banned exports in 2022 and is keen to bolster stocks and tame prices that surged after dry weather hurt output in 2022 and 2023. Rising wheat prices forced the government to sell record quantities to boost local supplies, leading to a drawdown in reserves essential for the world's biggest food welfare programme, which entitles nearly 800 million to free grain. The government has asked private traders to stay away from wholesale markets where farmers usually sell their produce to FCI or private traders, said traders and government sources, who declined to be named as they were not authorised to talk to the media. The government informally asked private traders to avoid buying wheat at least in April, the sources said, its first such guidance since 2007. Wheat procurement starts tapering off after mid-May. "We are not going to buy in April. We will wait until May. Except for processors and small traders, everyone is likely to follow the government's lead," said a Mumbai-based trader with a global trade house. Traders active in India's grain markets include Cargill Inc, Hindustan Unilever Ltd, ITC Ltd, Louis Dreyfus Company and Olam Group. The government has asked the top wheat-growing states to ensure that private traders do not get in the way of FCI's plans to buy at least 30 million metric tons this year, the sources said. In 2023, FCI bought 26.2 million metric tons of wheat from local farmers, below its target of 34.15 million metric tons. Because of last year's lower purchases, wheat inventories in government warehouses fell to 9.7 million metric tons at the start of March, the lowest since 2017. Lower wheat inventories tend to stoke open market prices. Despite falling inventories, New Delhi has resisted calls for wheat imports as overseas purchases tend to anger farmers who form an influential voting bloc. Millions of Indians will vote in the parliamentary election, which will be held from April 19. India's lower wheat stocks could force New Delhi to import 2 million metric tons of the grain this year, according to a United States Department of Agriculture report last week. FCI is focused on Uttar Pradesh, a top producing state which has historically contributed less than 2% to FCI's wheat procurement, with the state government asking railways not to provide freight cars to big traders in April, the sources said. Uttar Pradesh has asked local authorities to ensure that big traders do not get to buy large quantities of wheat, according to a government letter addressed to district officials and seen by Reuters. FCI recently started buying new wheat from farmers at a state-set 2,275 rupees ($27.29) per 100 kg against open market rates of around 2,500 rupees. ($1 = 83.35 rupees)

There is an anticipated twofold growth in domestic defence expenditure from FY24E-30E, in a development projected to shape the landscape of India's defence sector.According to a report by Jefferies, with an estimated domestic defence opportunity ranging between USD 100-120 billion over the next 5-6 years, the sector anticipates a visible 13 per cent industry Compound Annual Growth Rate (CAGR) from FY23 to FY30.Although India ranks among the top three defence spenders globally, its defence expenditure in Calendar Year 2022 (CY22) merely amounted to 10 per cent of that of the United States and 27 per cent of China's.Despite this, India's coastline and land area dimensions nearly match those of the US and China, indicating the substantial potential for growth and investment in its defence sector.The focus on indigenization is expected to be a significant driver, fostering double-digit growth in domestic defence spending.Furthermore, the export defence opportunities are projected to witness a commendable 21 per cent CAGR from FY23 to FY30, with India's defence exports surging 16-fold from FY17 to FY24E, reaching USD 3 billion.Projections suggest this figure could ascend to USD 7 billion by FY30E, aligning with the government's target of achieving USD 6 billion by FY29E.Data Patterns emerges as a frontrunner in the sector, boasting in-house technology and an anticipated 30 per cent+ Earnings Per Share (EPS) CAGR.The company is poised to witness a nearly fivefold increase in revenues from FY24E to FY30E, fueled by indigenization initiatives and a robust export pipeline.Similarly, HAL, renowned for its blend of steady service income and OEM (Original equipment manufacturer) manufacturing growth, anticipates a medium-term EPS CAGR of 22 per cent from FY24E to FY30E.Bharat Electronics (BEL), a market leader in domestic defence electronics, is well-positioned to capitalize on the steady defence spend trajectory.With 70-75 per cent of its revenues originating from the navy and army and the balance from the air force, BEL stands to benefit significantly from the defence opportunity.The company's zero debt and comfortable working capital position further fortify its position in the market.This surge in spending is poised to catalyze stock upticks across the industry.Jefferies has initiated coverage on key players such as Hindustan Aeronautics (HAL) and Data Patterns, endorsing a Buy rating.Additionally, the firm maintains a positive outlook on Bharat Electronics (BEL).In the fiscal year 2023-24, India's defence exports surged to a record Rs 21,083 crore, marking a 32.5 per cent increase compared to the previous fiscal's figure of Rs 15,920 crore.This data, disclosed in a press release issued by the Ministry of Defense on Monday, underscores a substantial growth trajectory in defence exports, which have expanded by 31 times over the past decade compared to 2013-14.The robust performance in defence exports can be attributed to concerted efforts from both the private sector and defence public sector undertakings (DPSUs).Notably, the private sector contributed approximately 60 per cent of the total exports, while DPSUs contributed the remaining 40 per cent.Furthermore, the number of export authorizations issued to defence exporters witnessed a notable increase in 2023-24. From 1,414 export authorizations in the preceding fiscal year, the figure surged to 1,507 during the reported period, as per the ministry's data.The escalating global geopolitical tensions coupled with India's steadfast focus on achieving self-reliance have paved the way for a substantial increase in order flow and revenue growth for domestic defense companies.Moreover, the Indian government's concerted efforts to bolster country-to-country relations aimed at promoting exports add another layer of buoyancy to the sector's prospects.Despite these projections, certain risks loom over the sector, including technology obsolescence and management bandwidth constraints.However, with prudent strategies and robust government support, India's defence sector appears poised for exponential growth, driving both economic and strategic advancements in the foreseeable future.