Technical View: Nifty near 7-week high, crossing 23,800 crucial for fresh upmove; Bank Nifty signals robust mood

Nifty Bull Market

The bulls seem to be unstoppable! The benchmark Nifty 50 reclaimed the 200-day EMA (23,400) in the opening trade itself and closed at a nearly seven-week high on March 24, continuing its upward rally for the sixth consecutive session. With a strong start to the week, the index has now climbed above all key moving averages (10, 20, 50, 100, and 200-day EMAs), with strong momentum in the indicators (RSI and MACD).

The next hurdle is placed at 23,800 (the previous swing high). If the index manages to close decisively above this zone, it will not only negate the lower highs-lower lows formation but also strengthen the bulls for a further upward rally toward the psychological 24,000 mark, followed by 24,125 (the 50% Fibonacci retracement from 26,277 to 21,965). However, the 200-day EMA is now expected to act as support, according to experts.

The Nifty 50 opened higher by more than 150 points at 23,515 and extended the rally as the day progressed, hitting a high of 23,709. It finished at 23,658, the highest closing level since February 5, up 308 points (1.32%), forming a bullish candlestick pattern with minor upper and lower shadows on the daily charts.

The index has seen a perpendicular rise in the last six trading sessions, with a rally of 1,350 points. "The upmove is likely to continue toward 23,800, which coincides with the previous swing high of February. Beyond that, it can stretch higher toward the psychological level of 24,000," said Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan.

Traders should continue to ride the upmove with a trailing stop-loss placed at 23,433, he advised.

According to the monthly options data, the maximum Call open interest was seen at the 24,000 strike, which could be the next key resistance zone for the Nifty 50, followed by the 24,500 and 24,100 strikes. The maximum Call writing was at the 24,500 strike, followed by the 24,200 and 24,400 strikes.

On the Put side, the 23,000 strike holds the maximum open interest, followed by the 23,500 strike (which is likely to be the immediate support zone for the Nifty 50) and the 23,300 strikes. The maximum Put writing was at the 23,500 strike, followed by the 23,600 and 23,300 strikes.

Bank Nifty

The banking benchmark index, Bank Nifty, outperformed the Nifty 50, rising 1,111 points (2.2%) to finish at 51,705, the highest closing level since December 18, 2024. The index not only negated the lower highs-lower lows formation but also decisively surpassed the 50% Fibonacci retracement (54,467-47,703), with a healthy trend in momentum indicators, which is a positive sign.

"Bank Nifty is now critically placed at the crucial level of 51,700. On the upside, 52,000 acts as immediate resistance, while on the downside, 51,000 will be the key support zone," said Satish Chandra Aluri of Lemonn Markets Desk.

Meanwhile, the India VIX, the fear gauge, rebounded sharply by 8.95 percent to finish at 13.7. It is still below the 14 mark but signals some caution for the bulls.