Indian Equity Markets Outlook

Market Analysis

The Indian equity market is expected to face downward pressure in the coming sessions due to the global peers' decline, driven by fears of a prolonged pause in the Fed funds rate and escalating West Asia conflict. Technical and momentum indicators also suggest caution, despite the recent rally driven by oversold conditions.

Nifty 50

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• The index closed at 23,778 on March 18, up 197 points (0.83%) from the previous session.
• The 23,600-23,500 zone is a key support level, with a decisive break below this zone potentially leading to a decline towards 23,300 followed by 23,000.
• The 23,800 level is expected to remain a crucial hurdle.

Bank Nifty

• The index closed at 55,326 on March 18, up 450 points (0.82%) from the previous session.
• A decisive fall below 54,700 could open the door for a decline towards 54,100 followed by 53,250.

Technical Analysis

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• The Nifty 50 is still trading below its crucial short- and medium-term moving averages, suggesting a bearish trend.
• Momentum indicators, including the RSI and MACD, also suggest caution.
• The 23,630-23,600 range is an important support zone, with a decisive breakdown below this area potentially leading to a resumption of the broader downtrend.

Key Levels

• Key Resistance: 23,850, 23,900, 24,050
• Key Support: 23,600, 23,300, 23,000

Strategy

• Buy Nifty Futures only above 23,830 with a stop-loss at 23,650, targeting 24,150.
• Nifty Futures can be considered on the long side only above 23,850 with a stop-loss near 23,650, targeting 24,200.