Nifty 50 Faces Crucial Test as March Series Commences: Key Support Levels in Focus

Nifty 50 and Bank Nifty Report

Market Performance

On February 24, the Nifty 50 plunged 288 points (1.12 percent) to 25,425, while the Bank Nifty slipped 217 points (0.35 percent) to 61,047. The market breadth remained bearish, with 2,102 shares declining compared to 835 shares advancing on the NSE.

Technical Analysis

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The Nifty 50 is consolidating near the 50 percent Fibonacci retracement of the gap formed on February 3, with the next critical support at 25,250, coinciding with the 200-day EMA. A break below 25,320 could result in a move toward the 200-day EMA support at 25,250. On the upside, a break above 25,780 is required for fresh buying to emerge.

Key Resistance and Support Levels

• Key Resistance: 25,780
• Key Support: 25,190

Trading Strategies

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• Short positions can be created below 25,320 with a stop-loss of 25,390 and targets of 25,250 followed by 25,190.
• Sell Nifty Futures on a rise toward 25,730 with a stop-loss of 25,880, targeting 25,430.

Bank Nifty Outlook

The Bank Nifty is stuck in a consolidation phase, oscillating within the 60,600–61,700 range and forming a triangle pattern. A break above the prior record high of 61,764 is required for bulls to regain control, with 60,600 acting as crucial support. A breakdown below this level could suggest a short-term top formation.

Key Resistance and Support Levels

• Key Resistance: 61,764
• Key Support: 60,600

Trading Strategy

• Long positions can be considered above 60,600, with a stop-loss of 60,500 and targets of 61,000 followed by 61,500.