Nifty 50, Sensex Outlook: Market Trends to Watch on March 6

Indian Stock Market Outlook for Friday

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Friday, tracking weak global market cues. The ongoing US-Israel-Iran war has dented investors' risk appetite, leading to a negative start for the Indian benchmark index.

Key Trends and Support/Resistance Levels

• Sensex: Formed a bullish candle on daily charts, indicating a pullback formation is likely to continue in the near future.
• Support zones: 79,500, 79,200
• Resistance zones: 80,500 - 80,700
• Immediate support: 78,400
• Stronger support: 78,000
• Resistance zones: 81,000, 81,200

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Nifty 50 Outlook

• Nifty 50 index formed a bullish candlestick pattern with shadows, signaling a pullback from an oversold territory after recent sharp decline.
• Support levels: 24,500, 24,600
• Resistance levels: 25,000, 25,100
• Retracement of 23.6% of recent decline: 24,800

Bank Nifty Outlook

• Bank Nifty index ended higher at 59,055.85 on Thursday, forming a High Wave candle on the daily chart.
• Resistance zone: 59,400 - 59,500
• Support zone: 58,600 - 58,500

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Market Sentiment

• India VIX cooled off sharply, declining nearly 16% to slip below the 18 mark.
• Momentum indicator RSI has rebounded from the oversold territory and is currently placed near 36, indicating some recovery in momentum.

Trading Strategy

• Traders may continue to adopt a cautious approach, focusing on key support levels and waiting for a decisive breakout above resistance zones for fresh directional opportunities.
• Buying on dips remains the preferred strategy at current levels, as both indices continue to maintain a positive trend.