The Nifty 50 and Bank Nifty witnessed profit booking on March 26 (a day before the expiry of March Futures & Options contracts), forming a bearish candlestick pattern on the daily charts, signaling consolidation in the near term. According to experts, as long as the index holds 23,400 (200-day EMA), momentum may pick up once again toward the 23,700-23,800 zones. However, if the index falls below this level, selling pressure may intensify. The Bank Nifty is likely to find support in the 51,000-50,800 zone. If it holds above this level, buying interest may resume; if it drops below, bears may pull the index down toward the 50,000 mark.
On Wednesday, March 26, the Nifty 50 fell 182 points to finish at 23,487, while the Bank Nifty dropped 399 points, closing at 51,209. The market breadth remained in favour of declines, with 2,134 shares under pressure compared to 485 shares witnessing buying interest on the NSE.
Nifty Outlook and Strategy
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan
On the daily charts, we can observe that after a rally of 1,500 points, the Nifty witnessed profit booking from the 23,800 levels. On the downside, the 23,460 – 23,400 zone shall act as a crucial support level, which coincides with the gap area formed on March 24 and the 40-hour moving average. On the upside, 23,650 – 23,670 will act as an immediate hurdle from a short-term perspective.
Key Resistance: 23,650, 23,670
Key Support: 23,450, 23,400
Strategy: Buy Nifty Futures on a dip around 23,400, with a stop-loss of 23,320, targeting 23,650 - 23,670.
Vidnyan S Sawant, Head of Research at GEPL Capital
The Nifty index formed a strong bullish candle last week, closing at a five-week high, signaling positive sentiment in the short to medium term. This week, the Nifty touched a high of 23,869 but struggled to sustain higher levels, leading to a correction. However, it continues to hold above its 20-week SMA (23,369), which remains a positive sign. On the daily charts, a strong rally from the recent bottom stalled at the key resistance of 23,800. Going forward, immediate resistance is seen at 23,870, with higher levels at 24,250 and 24,500. On the downside, crucial support levels are placed at 23,300, followed by 23,000 and 22,800.
Key Resistance: 23,870, 24,250
Key Support: 23,300, 23,000
Strategy: Buy Nifty Futures above 23,870 for a target of 24,250 and 24,500 with a stop-loss of 23,500.
Bank Nifty - Outlook and Positioning
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan
The Bank Nifty has faced resistance from the 52,000 mark, which coincides with the 61.82% Fibonacci retracement level of the entire September 2024 to March 2025 decline (from 54,467 to 47,700). A gap area formed on December 19, 2024, is also acting as stiff resistance and restricting further upside. We believe the Bank Nifty is currently witnessing a pullback toward the 51,000 – 50,840 zone, where support in the form of the 40-hour exponential moving average is placed. We expect the Bank Nifty to hold this support zone and resume its upward movement toward 52,000 – 52,200. Thus, this dip should be considered a buying opportunity.
Key Resistance: 51,600, 51,900
Key Support: 51,000, 50,800
Strategy: Buy Bank Nifty Futures on dips towards 51,000 with a stop-loss of 50,800 for a target of 51,600.
Vidnyan S Sawant, Head of Research at GEPL Capital
On the weekly timeframe, the Bank Nifty formed a strong bullish candle, closing at a five-week high while sustaining above its 20-week SMA, indicating outperformance relative to the benchmark Nifty. On the daily charts, it broke above its previous swing high of 50,641, signaling strong bullish momentum. Looking ahead, immediate resistance is seen at 52,100, followed by 52,850, while key support levels are placed at 50,600 and 49,700.
Key Resistance: 52,100, 52,850
Key Support: 50,600, 49,700
Strategy: Buy Bank Nifty Futures above 52,100 for a target of 52,850 and 53,800, with a stop-loss of 51,550.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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