Sensex Gain 1,131 Points, Nifty at 22,834; Tomorrow Nifty Prediction
Tomorrow Nifty Prediction
Nifty closes at its highest level in a month: What’s next for the market on March 19?
Market Outlook: March 18 witnessed a major upturn in the Indian stock markets, with the Nifty index closing at its highest point in about a month.
The rally that led to this surge is seen as a strong signal of a possible shift in momentum, with experts suggesting that the market could continue its upward movement in the coming days.
Aditya Gaggar, Director at Progressive Shares, commented that the breakout in the Nifty index is indicative of a positive change in market momentum, with the bulls taking control. Following this breakout, the index is now targeting 22,920.
However, Gaggar also cautioned that the 50-day moving average (50DMA), which is approaching this level, could act as a strong resistance, making it critical for the market to overcome this hurdle for a continued uptrend.
Furthermore, Gaggar mentioned that the support level for Nifty has shifted higher to 22,620, suggesting a more robust foundation for the index in the near term.
Strong Market Close on March 18:
The Indian stock markets experienced a significant rally on March 18, with the Sensex closing at 75,301.26, marking a gain of 1,131.31 points, or 1.53%.
Meanwhile, Nifty closed at 22,834.30, up by 325.55 points, or 1.45%. The session was marked by strong breadth, with 2,715 stocks advancing, 1,153 stocks declining, and 117 stocks remaining unchanged.
The market breadth was overwhelmingly positive, indicating a broad-based rally across sectors.
Among the top gainers in the Nifty index were ICICI Bank, M&M, Shriram Finance, L&T, and Tata Motors, all of which saw impressive gains.
On the flip side, Bajaj Finserv, Bharti Airtel, and Tech Mahindra were among the biggest decliners, reflecting the sectoral shifts during the session.
In terms of sector performance, all major sectoral indices closed in the green. Auto, capital goods, consumer durables, metal, power, realty, and media all posted gains between 2% and 3%, driving the overall market strength.
Additionally, the BSE midcap and smallcap indices also saw strong upward movement, gaining more than 2% each, indicating that broader market stocks were outperforming the Nifty.
What Can We Expect on Wednesday, March 19?
Aditya Gaggar’s View: Aditya Gaggar noted that bulls dominated the market on March 18, with Nifty showing a strong bullish trend from the very beginning of the session.
The index opened with a gap up and then continued its upward trajectory throughout the day. Gaggar pointed out that this rally was broad-based, with all major sectors ending the day in positive territory.
The media and realty sectors emerged as the top performers, contributing significantly to the market’s overall strength.
Gaggar emphasized the significance of the strong bullish candle formed by Nifty on the daily chart, signaling a much-awaited range breakout.
This breakout suggests a shift in market momentum, with the bulls gaining control of the market. Based on this breakout, the index target is now seen at 22,920.
However, Gaggar cautioned that the 50DMA, which is approaching the 22,920 level, could act as a formidable resistance.
If the bulls manage to break above this level, the rally could gain further strength. On the flip side, if the index faces resistance at this point, a temporary pullback could be expected.
Additionally, Gaggar noted that the support level for Nifty has moved up to 22,620, which is crucial for the market’s stability.
This support level provides a solid foundation for any potential correction, suggesting that any dips may be temporary as long as the index stays above this level. Gaggar’s outlook remains bullish, but he stressed that traders should remain cautious as the market approaches key resistance zones.
Nagaraj Shetty’s Perspective from HDFC Securities:
Nagaraj Shetty of HDFC Securities observed that after several days of consolidation, Nifty finally saw a significant upside breakout on March 18.
The index closed with a gain of 325 points, marking an important milestone in its upward journey. Shetty pointed out that the Nifty opened with a gap up and continued to move higher throughout the session.
The upward momentum was sustained in the latter part of the day, with the index ending the session strongly.
Shetty highlighted that Nifty formed a long bullish candle on the daily chart, a technical formation that signals strength and confirms the breakout.
He noted that the index successfully crossed important resistance levels around 22,700-22,800, and this breakout is seen as a positive sign for the short-term outlook.
According to Shetty, the short-term trend for Nifty looks positive, and the index could continue its upward movement in the coming sessions.
Shetty also pointed out that the next resistance level for Nifty lies in the range of 23,100-23,200, suggesting that the index may target these levels in the coming days if the bullish momentum persists.
For the immediate short term, Shetty identified 22,700 as a key support level, and any pullbacks below this level could be seen as buying opportunities for traders with a bullish bias.
Final Remarks:
The strong performance of the Indian stock markets on March 18 signals a shift in momentum toward the bulls, with Nifty closing at its highest level in about a month.
Both Gaggar and Shetty suggest that the market outlook remains positive, with Nifty targeting higher levels in the near term.
However, they also caution that key resistance levels, such as the 50DMA at 22,920, could challenge the bullish rally.
Traders should watch these levels closely, as any failure to breach resistance could lead to short-term consolidation or pullbacks.
Overall, the market appears to be on a bullish trajectory, with Nifty poised to continue its upward movement in the short term.
The immediate support levels at 22,620 and 22,700 should provide some cushion in case of any market corrections.
As always, traders should remain cautious and monitor technical levels closely as the market approaches critical resistance zones.
The strong market breadth and sectoral performance suggest that the current rally could have legs, but resistance at higher levels could introduce volatility.
