Sensex Gain 557 Points, Nifty at 23,350; Nifty Prediction for Monday
Nifty Prediction for Monday
Market Closes with Gains: Key Indicators and Insights for March 24
Market Overview: The Indian equity markets closed on a strong note on March 21, building on positive momentum and reflecting overall optimism.
The Nifty index continued to rise after a significant breakout from a falling trendline, marking a key technical level for investors to watch.
Along with this, market sentiment remains favorable, suggesting a continuation of the upward trend for the short-to-medium term.
The stock market’s performance on March 21 was robust, with both the Sensex and Nifty indices demonstrating strength across the trading session.
While the broader market showed mixed sectoral performances, the bullish trend in several key sectors such as oil & gas, telecom, and media helped drive the overall market gains.
Stock Market Summary:
At the close of trading on March 21, Nifty closed at 23,350, gaining 159.75 points or 0.69% from the previous session.
The Sensex, which mirrors the performance of the top 30 companies, also ended the day on a high note, rising 557.45 points, or 0.73%, to finish at 76,905.51.
Overall, the day witnessed a positive market breadth, with 2,695 stocks advancing, 1,181 stocks declining, and 118 stocks remaining unchanged.
Among the top performers of the day were BPCL, ONGC, SBI Life Insurance, NTPC, and Bajaj Finance, which contributed heavily to the rise in the Nifty index.
On the flip side, stocks like Hindalco Industries, Wipro, Trent, Infosys, and Tata Steel faced pressure, pulling back from their recent highs.
Despite the mixed performance from individual stocks, the overall market sentiment remained constructive, driven by strong institutional and retail buying.
The BSE Midcap and Smallcap indices performed particularly well, with gains of 1-2%. This shows the strength of the broader market, with midcap and smallcap stocks benefiting from the positive market conditions.
Most of the sectoral indices closed in the green, indicating broad-based buying interest. However, the consumer durables and metals sectors lagged behind the rest of the market.
Sectoral Performance and Market Drivers:
Among the sectors, oil & gas, media, and telecom were clear outperformers, gaining nearly 2% during the session.
These sectors are benefiting from several factors, including favorable government policies, strong earnings reports, and structural growth drivers.
In contrast, the consumer durables and metals sectors faced headwinds due to global commodity price fluctuations and domestic demand concerns.
In the oil & gas sector, companies like BPCL and ONGC posted gains, benefiting from the recent uptick in global crude oil prices.
Similarly, telecom stocks gained momentum as investors continued to expect strong earnings growth amid consolidation in the industry.
Media stocks also outperformed, driven by rising consumption trends and advertising revenue growth, particularly in digital media platforms.
The metals sector, however, struggled as the prices of industrial metals faced volatility in the global markets.
Moreover, concerns about weakening demand in some of the key global markets like China contributed to a subdued outlook for the sector.
The consumer durables segment faced challenges due to sluggish demand, especially in rural areas, though companies in this sector are expected to rebound as consumer sentiment improves.
Technical Analysis and Market Sentiment:
Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, provided insightful analysis on Nifty’s performance.
According to Yedve, while Nifty began the day with a slight decline, a recovery took place following initial volatility, and the index closed strong at 23,350.
This uptick demonstrated the resilience of the market, as buying interest resumed after short-term profit-taking.
One of the key highlights was the outperformance of the broader market, particularly the Nifty Midcap 100 and Nifty Smallcap 100, both of which registered strong gains of 1.38% and 2.06%, respectively.
This shows that investors are looking beyond the large-cap stocks and are diversifying their portfolios into midcaps and smallcaps, which are expected to offer higher growth potential in the current market conditions.
Technically, Nifty’s breakout above the falling trendline, combined with the formation of a bullish candle on both the daily and weekly charts, suggests strong momentum.
Immediate support for Nifty is placed at the 23,000 level, while resistance is seen at 23,520, coinciding with its 100-day simple moving average (SMA).
This SMA level is considered a critical barrier, and if Nifty sustains above it, the index could continue its bullish momentum in the near term.
As long as Nifty stays above 23,000, traders are advised to follow a “buy on dips” strategy, as the market appears to be in an uptrend.
The momentum is further supported by positive technical indicators, such as higher highs and higher lows, signaling sustained buying interest.
Similarly, the Bank Nifty index, despite opening with a gap-down, recovered strongly from its lower levels, closing at 50,594.
Bank Nifty’s technical outlook remains positive, with a bullish candle forming on both daily and weekly charts, suggesting strength in the banking sector.
The next critical resistance for the index lies at 50,650, which is near its previous swing high. A break above 50,650 could trigger further upside in Bank Nifty, prompting traders to watch for potential breakouts.
Market Prediction for March 24:
Rupak Dey, Senior Technical Analyst at LKP Securities, also shared a positive outlook for Nifty, noting that the index continues its rise after the breakout from the falling trendline.
The positive sentiment in the market is reflected in the overall performance of various sectors, which continues to show resilience. In the last session, Nifty faced resistance at the 21-week exponential moving average (EMA) at 23,382.
A move above 23,400 would suggest further gains for Nifty, with the potential for an additional 200-point upward move.
The next key resistance for Nifty lies at 23,600, and a decisive breakout above this level could signal the start of the second phase of the rally. Such a breakout would likely attract more buying interest, both from retail and institutional investors.
However, if Nifty fails to move above 23,400, the index could experience short-term consolidation, leading to a sideways range-bound move in the coming sessions. In this scenario, traders may look for key support levels to enter the market during any dips.
Key Levels to Watch:
- Nifty Support: 23,000
- Nifty Resistance: 23,400, followed by 23,600
- Bank Nifty Resistance: 50,650
- Bank Nifty Support: 50,000
Strategy and Conclusion:
Given the strong bullish momentum in the market, traders are advised to stay focused on sectors and stocks that are showing consistent strength, such as oil & gas, media, and telecom.
Midcap and smallcap stocks also present attractive opportunities, as they are expected to benefit from the broad-based market rally.
Traders should maintain a “buy on dips” approach, particularly as Nifty tests its support levels and consolidates in the short term.
If Nifty breaks above 23,400 and sustains its momentum, it could continue to move higher, potentially reaching the next resistance at 23,600. Bank Nifty, too, could see a fresh breakout if it surpasses the 50,650 resistance.
Therefore, market participants should remain cautious but optimistic, looking for pullbacks to enter positions with a positive long-term outlook.
March 24 could prove to be a crucial session, as key resistance levels will determine whether the market continues its bullish rally or enters a consolidation phase.
