The Indian stock market is ready to start on a positive note on Tuesday, March 19, as indicated by Gift Nifty trends, which was trading at about 22,960—66 points above Nifty futures' last close. This indicates a continuation of the strong rally that was seen in the last session.
Market Recap: Nifty 50 and Sensex Surge
On Monday, March 18, Indian benchmark indices posted a
remarkable rally. The BSE Sensex rose 1,131.31 points (1.53%) to close at
75,301.26, and the NSE Nifty 50 rose 325.55 points (1.45%) to close at
22,834.30. This was a clear breakout above consolidation, sending market
sentiment higher and moving key indices past significant resistance levels.
Sensex Outlook: More Gains Ahead
The Sensex managed to cross the 74,500 resistance mark,
ending its consolidation phase. Experts feel this momentum will carry on,
buoyed by the index remaining above the 20-day Simple Moving Average (SMA).
Shrikant Chouhan, Kotak Securities' Head of Equity
Research, said 75,000 and 74,500 will remain strong support levels, and 75,600
and 75,800 can be seen as immediate selling levels for profit-booking by
traders. The short-term trend is bullish, and intraday corrections are seen as
buying opportunities.
Nifty 50 Analysis: Moving Towards 23,100?
The Nifty 50 index registered a strong upbreak on March
18 with a close above the key resistance level of 22,800.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC
Securities, pointed out that the development of a long bullish candle in the
daily chart indicates a strong uptrend. With Nifty well above its erstwhile
resistance, he expects the index to make a bid towards 23,100–23,200 in the
next couple of sessions, with near-term support at 22,700.
Technicals also support the bullish view. Om Mehra,
Technical Analyst at SAMCO Securities, pointed out that the daily RSI has
crossed over 50, indicating better market breadth and strength. He forecasts
resistance at 23,000, then at 23,100, and support at 22,700.
Nifty OI Data: Key Levels to Watch
Mandar Bhojane, Research Analyst at Choice Broking, says
Open Interest (OI) figures indicate stubborn resistance at 23,000 and 23,400 on
the call side, while 22,300 is a crucial support price. Nifty convincingly
sustaining above 22,600 is likely to take further upside momentum.
Bank Nifty Outlook: Targeting 50,000?
The Bank Nifty index jumped 960.35 points (1.99%) to close at 49,314.50 on Monday with a strong bullish candle.
Bank Nifty is indicating strong strength since it is
trading above the 20- and 50-day Exponential Moving Averages (EMA), according
to Bajaj Broking Research. The index is expected to move ahead towards the
psychological 50,000–50,600 levels by analysts, while short-term support comes
in at 48,400–48,600.
Om Mehra of SAMCO Securities highlighted that Bank Nifty's breakout from a downtrendline is a sign of more bullish strength. With RSI above 55, the index has an upward bias, with major resistance at 49,800 and then 50,100.
Market Volatility: India VIX Falls
The India VIX, a chief gauge of volatility in the
markets, declined by 1.56% to 13.21, reflecting better investor optimism. Lower
volatility generally favors a bullish market, but traders must be cautious to
watch out for any short-term corrections.
Conclusion: Bulls on Top, Buy on Dips Advised
With Nifty 50 and Sensex crossing important resistance
points and exhibiting consistent bullish strength, experts recommend a 'buy on
dips' strategy in the short run. Good support levels in Nifty and Bank Nifty
act as a cushion, and resistance levels will determine profit-booking.
Disclaimer: Views given above are expert and brokerage
firm analysis of the market. Investors should refer to certified financial advisors
before making investments.
