Technical Analysis Suggests Strong Follow-up Demand Required to Propel Nifty Beyond 24,500, Downside Pressure on Oil Eases VIX, Bank Nifty Faces Key Test at 57,500

Nifty 50 Bounces Back on March 10 The Nifty 50 rebounded by 0.97 percent to 24,262 on March 10, snapping a two-day sharp losing streak. The index opened more than 250 points higher and remained in positive territory throughout the session, forming a small-bodied bearish candle with a long lower shadow on the daily charts.

Market Sentiment The sharp fall in oil prices, which traded below the $100-a-barrel mark, and the sharp downtrend in India VIX lifted market sentiment, indicating a potential recovery. However, consistent follow-up buying interest is needed for market stability, as traders closely watch developments in the Middle East and oil prices remain at elevated levels.

Key Levels The Nifty 50 needs to close strongly above 24,350-24,500 to move towards the 24,850-25,000 zone. The index has immediate support at 24,050-24,000, followed by 23,700 as a crucial support area. The weekly options data suggests that 24,000 is expected to act as support, with resistance at 24,300-24,500 in the short term.

Technical Analysis The daily RSI rebounded to 34.22, reflecting stabilisation in momentum after recent volatility, but it still remains below the reference line. The histogram bar signals fading bearish momentum, though the MACD remains below the reference and zero lines. The formation of a small-bodied bearish candle with a long lower shadow on the daily charts indicates strong overhead resistance around 24,400-24,500 levels.

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Bank Nifty The Bank Nifty rebounded sharply, outperforming the benchmark Nifty 50 after breaking below its rising trendline and slipping under the 200-day moving average. The banking index surged 1.66 percent to 56,951, forming a bullish candle on the daily timeframe after a gap-up opening. The RSI rose to 33.24 but remains well below the signal line. The MACD continues to maintain a sell signal with further red bar expansion in the histogram.

Key Levels The Bank Nifty is expected to test its 200-day moving average resistance placed near 57,500 in the short term. Sustaining above this level could lead to further recovery. A stronger bullish view would emerge only after the index reclaims its 50-day moving average. Until then, a cautious stance is advisable, with support at 56,200 and resistance at 57,500.