Nifty Eyes Follow-Up Buying at 23,100 as Bank Nifty Targets 53,000

Nifty 50 and Bank Nifty Witness Relief Rally

Key Highlights:

• Nifty 50 witnessed a relief rally of 1.78% on March 24, following a 2.6% correction in the previous session, driven by hopes of de-escalation in the Iran conflict.
• Bank Nifty also experienced a healthy gain of 2.27%, opening and closing at 52,606.

Market Analysis:

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The Nifty 50 opened 365 points higher at 22,878 and hit an intraday low of 22,624 amid morning volatility. The index formed a small-bodied bullish candle on the daily charts, indicating uncertainty among market participants. However, the negative chart pattern of lower tops and bottoms continues, with the present upmove expected to form a new lower top in the pattern.

Technical Indicators:

• Monthly options data suggests that the Nifty 50 is likely to remain within a broad range of 22,500-23,500 in the short term.
• India VIX, the fear gauge, declined 7.44% to 24.74, offering some comfort to bulls.

Resistance and Support Levels:

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• Nifty 50: Immediate resistance at 23,000-23,100 and 23,400-23,500 levels; immediate support at 22,700 and 22,500 levels.
• Bank Nifty: Immediate resistance at 53,000-53,100 zone; crucial support region at 52,200-52,100 zone.

Expert Views:

• Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, expects a sustainable bounce-back on Tuesday to be a positive sign for bulls attempting a comeback.
• Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, expects the Bank Nifty to face resistance at 53,000-53,100 zone and a sustained move above 53,100 could lead to a further extension of the pullback rally.