Market Update

The market rallied around 3% in the last two sessions from the March 16 low, driven by short covering and a cooling VIX. However, the uptrend requires a strong trigger to continue.

Key Statistics

• Nifty 50: +172 points (0.74%) to 23,581 on March 17
• Bank Nifty: +463 points (0.85%) to 54,876 on March 17
• NSE: 1,770 shares advanced against 1,202 declining shares

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Market Outlook

The Nifty 50 is well below its key moving averages and needs to reclaim and sustain above 23,600-23,700 levels to see a rally towards 23,800-24,000 zone. Until then, consolidation cannot be ruled out, with support at 23,350.

Bank Nifty

The Bank Nifty needs to convincingly cross 55,000 for a move towards 56,000. Until then, range-bound trading may persist with support at 54,100.

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Technical Analysis

• Daily Chart: The Nifty has closed above the previous day's high for the first time in the last four sessions, suggesting some improvement in short-term momentum.
• RSI: The daily RSI stands at 33.1 and is trading above its signal line, suggesting a potential shift towards bullish momentum.

Strategies

• Long positions in Nifty Futures can be created above 23,660 with a stop-loss at 23,520 and targets of 23,800 followed by 23,900.
• Buy Nifty Futures on dips around 23,490 with a stop-loss at 23,350, targeting 23,770.
• Consider buying the Nifty near 23,500 for targets of 23,632 and 23,850, with a stop-loss at 23,328.