Indian stock markets continued their positive momentum on Wednesday, March 19, as both Sensex and Nifty closed in the green. Despite heavy selling in IT stocks, which capped the gains, the market remained optimistic. The BSE Sensex gained 147.79 points, or 0.20%, ending at 75,449.05. Meanwhile, the Nifty index rose by 73.30 points, or 0.32%, closing at 22,907.60.
Positive Sentiment in the Short Term
Market experts suggest that the sentiment for Nifty remains positive. Many analysts believe the bulls are likely to drive the index higher in the coming sessions. The immediate target for Nifty is seen between 23,000 and 23,100, with resistance placed at 22,600.
Technical Indicators Favor a Bullish Trend
Rupak De, Senior Technical Analyst at LKP Securities, explained that Nifty has closed above the 21EMA for the past two days. This confirms a bullish trend for the index. Additionally, Nifty’s RSI indicator is showing a bullish crossover, signaling continued upward momentum.
“Nifty’s trend is expected to remain positive, though some consolidation may occur in the next two to three days,” said De. He added that the support level for Nifty is around 22,600, with resistance near 23,100 to 23,150.
Potential Consolidation Chart Patterns
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted a small positive candle formation in the Nifty daily chart. This suggests a breather following strong performance in the previous session. Shetti also pointed out that Nifty is nearing a crucial resistance level between 23,000 and 23,100. A minor dip or consolidation could happen in the next one to two sessions.
Nifty Support and Resistance Levels
Ajit Mishra, SVP of Research at Religare Broking, mentioned that some consolidation is likely in the short term. However, the overall sentiment remains positive, favoring a “buy on dips” approach. He suggested that traders focus on sectors like banking, financials, metals, and energy, which are leading the market rally.
According to Vinay Rajani, Senior Technical & Derivative Research Analyst at HDFC Securities, Nifty has an immediate resistance at 23,000. Support for Nifty is seen around the 22,670-22,700 range. Rajani believes that this support will help stabilize the market in the short term.
Nifty Approaching Key Moving Averages
Rajesh Bhosale, Equity Technical Analyst at Angel One, said that Nifty has reached the 50EMA, a key moving average. This level, along with the descending trend-line resistance, had previously acted as a significant barrier to February’s rebound. The confluence zone around 23,000 will be crucial, especially with the weekly expiry and post-FOMC developments.
A decisive move above the 23,000 level could drive Nifty toward 23,200 and potentially 23,400 in the near term. On the downside, a negative outcome could lead to a price dip. In such a case, the 22,750–22,700 zone will likely act as a strong buying opportunity.
Looking Ahead: Nifty’s Outlook for the Coming Sessions
Traders are advised to maintain a positive bias toward the midcap space for continued strength. Nifty’s overall sentiment remains bullish, but careful attention to support and resistance levels is crucial. As consolidation is possible, market participants should look for opportunities to buy on dips.
