Market Outlook

The market is expected to experience bearish momentum for the third consecutive session, driven by rising oil prices above $100 a barrel and intensifying Strait of Hormuz tensions. This sentiment is reflected in the lower high–lower low structure and the VIX sustaining above 21.

Nifty 50 Outlook

The benchmark index is expected to breach the 23,500 support and slide toward 23,000 in the upcoming sessions. The immediate hurdle is placed at 23,700–23,800. On March 12, the Nifty 50 slipped 228 points (0.95 percent) to 23,639, while the Bank Nifty dropped 635 points (1.14 percent) to 55,101, with weakening market breadth.

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Key Resistance and Support Levels

• Nifty 50

• Key Resistance: 23,800, 24,000, 24,150
• Key Support: 23,500, 23,350, 23,250

• Bank Nifty

• Key Resistance: 55,600
• Key Support: 54,500–54,200

Trading Strategies

Nifty 50

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• Traders may consider the Short Straddle for the March 17 expiry by selling one lot of 23,650 PE at Rs 242 and selling one lot of 23,650 CE at Rs 253.
• Stop-Loss: Hold this strategy strictly, with the maximum Mark-to-Market (MTM) loss capped at Rs 10,000.
• Target: Hold this strategy, aiming for a maximum Mark-to-Market (MTM) profit target of Rs 20,000, while considering profit booking once MTM gains exceed Rs 10,000.

Bank Nifty

• The Nifty Bank index is expected to move down toward the 54,500–54,200 zone.
• The immediate resistance is placed at 55,600.

Technical Analysis

• The Nifty 50 index is trading below its 10-DEMA, while the RSI remains below 40 in oversold territory, reflecting weak momentum.
• The Bank Nifty is trading below the 10-DEMA, while the RSI on both daily and hourly charts remains in oversold territory, reflecting weak momentum.