The benchmark indices of the Indian stock market, namely the Sensex and Nifty 50, are anticipated to experience a subdued opening on Friday, influenced by a blend of global market signals. The indications from Sgx Nifty suggest a subdued opening for the Indian benchmark index. The Sgx Nifty was observed trading at approximately 23,217, reflecting a premium of nearly 17 points relative to the prior close of Nifty futures.

On Thursday, the domestic equity market recorded gains for the fourth consecutive session, with the benchmark Nifty 50 concluding near 23,200. The Sensex experienced an increase of 899.01 points, representing a rise of 1.19%, concluding at 76,348.06. Meanwhile, the Nifty 50 advanced by 283.05 points, or 1.24%, to finish at 23,190.65. The Indian stock market indices sustained their upward trajectory for the fourth consecutive day, as evidenced by the Sensex’s increase of 899 points.

“From a technical perspective, the Sensex has effectively surpassed the 50-day Simple Moving Average and the 75,700 resistance threshold, indicating a largely favorable outlook.” Furthermore, it established a bullish candle on daily charts, indicating potential for an upward trend from the present levels. “The prevailing market sentiment appears to be optimistic; however, for day traders, the optimal approach would involve purchasing during price declines and liquidating positions during price surges,” stated Shrikant Chouhan, Head of Equity Research at Kotak Securities. He posits that, in the near term, the levels of 76,000 and 75,700, corresponding to the 50-day simple moving average, will act as critical support zones for the Sensex. Conversely, the thresholds of 76,500 and 76,800 may function as significant resistance points for day traders. Should the Sensex dip beneath 75,700, we may observe a shift in market sentiment, prompting traders to reconsider their long positions and potentially exit below this threshold.

In the realm of Nifty options, the highest Call Open Interest is observed at the 23,500 strike, followed by the 23,000 strike. Conversely, the Maximum Put Open Interest is concentrated at the 23,000 strike, with the 22,500 strike next in line. According to Chandan Taparia, Head of Derivatives & Technicals at Wealth Management for Motilal Oswal Financial Services Ltd., call writing is observed at the 23,400 and 23,200 strikes, while put writing is noted at the 23,000 and 23,200 strikes. According to the analysis of option data, a wider trading range is indicated between the 22,800 and 23,800 levels, with a more immediate range identified between 23,000 and 23,400 levels, he noted.

Nifty 50 exhibited robust upward momentum on March 20, concluding the day with substantial gains of 283 points. A substantial bullish candle has emerged on the daily chart, signaling a pronounced upward breakout in the market. The Nifty 50 currently resides at a significant long-term resistance level, approximately 23,200, as indicated by the intermediate down-sloping trend line observed on the weekly timeframe chart. The current robust upward momentum suggests a potential breakout above the resistance level, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. Shetti indicates that the fundamental trajectory of the Nifty 50 remains robustly positive, and a significant upward breakout beyond the 23,200 mark could propel the index towards the next resistance level at 23,800 in the short term. Immediate support is established at 23,070.
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Om Mehra, a Technical Analyst at SAMCO Securities, observed that the Nifty 50 index has produced a runaway bullish candle, suggesting a sustained upward momentum in the market. The Nifty index is maintaining its position above the 61.8% Fibonacci retracement threshold, currently situated at 23,110. Furthermore, the Nifty 50 is positioned above both the daily supertrend and the 50-day moving average, reinforcing the prevailing bullish sentiment. The daily RSI is firmly positioned above the 60 threshold. Provided that the level of 22,950 is maintained on a closing basis, the prevailing uptrend is expected to persist, thereby rendering a buy-on-dips strategy advantageous,” Mehra stated. In the event of a pullback, the primary support level is established at 23,080, with a subsequent level at 23,050, he noted.

VLA Ambala, Co-Founder of Stock Market Today, indicated that the market has established a bullish belt-hold candlestick pattern, with the RSI positioned at 61, suggesting a buy-on-dip approach for both intraday and swing trading strategies. “The Nifty index is likely to encounter support in the range of 23,150 to 23,120, while facing resistance around 23,400 to 23,490 in the forthcoming market session,” Ambala stated.

The Bank Nifty experienced a rally of 0.72%, concluding at 50,062.85 on Thursday. This marks the sixth consecutive session of gains, characterized by the formation of a fourth successive bullish candle, which indicates both a higher high and a higher low, underscoring the momentum and continuation of the upward trend. “Looking forward, we anticipate that the Bank Nifty index will sustain a positive trajectory and approach the 50,600 mark in the upcoming sessions, which represents the upper boundary of the consolidation range observed over the past 10 weeks.” The immediate support is established within the range of 49,200 to 49,000, coinciding with significant retracement levels of the ongoing upward movement and the 50-day exponential moving average. Over the past 10 weeks, the index has exhibited a pattern of consolidation within the extensive range of 47,700 to 50,600. Bajaj Broking Research noted that purchasing demand has recently surfaced from the lower boundary of the range. A breakout above the upper band is anticipated to indicate a significant reversal of the corrective trend, potentially paving the way for upward movement towards the 51,500 – 52,000 range in the forthcoming weeks.

Om Mehra noted that the Bank Nifty index exhibited a robust upward trend, concluding higher in every session thus far this week. The Bank Nifty index is approaching the prior swing high of 50,642, and a clear breakout above this threshold may considerably enhance bullish momentum. The daily RSI is firmly positioned above 60, suggesting a persistent level of buying enthusiasm in the market. A slight resistance is observed at 50,380, coinciding with the placement of the 100-day moving average. A retracement to the 49,650 – 49,700 range may present a favorable entry point for investors, given that the overarching trend remains supportive of bullish sentiment,” Mehra stated.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, notes that the Bank Nifty index has maintained crucial support at 49,650 and has effectively surpassed the 50,000-resistance level, resulting in the formation of a green candle. The forthcoming significant resistance level for the index is situated around 50,640, aligning with its prior swing high. Provided that Bank Nifty sustains its position above 49,650, the prevailing bullish momentum is anticipated to persist. Yedve recommended that traders implement a strategy of purchasing during market pullbacks to seize short-term opportunities.