The Nifty scaled past 23,000 and FIIs were the net buyers in the cash market for the second time in March. Can this positive news along with encouraging global cues bolster the domestic equity market sentiment? The US Fed’s indication of two rate cuts in 2025 is also a key positive trigger. Market participants expect the rally to continue further.
Most analysts have placed their first resistance zone at 23,500, but the Nifty 50 needs to trade above 23,250 to reach that zone. However, if it fails to sustain above that level it may consolidate near the 23,000-23,200 level.
ALSO READShortcovering rally: Nifty ends near 23,200, Sensex jumps 899 points, FIIs buys Rs 3,239 crore
“We believe the overall market sentiment is bullish, but buying on dips and selling on ups would be the ideal strategy for day traders. In the near term, 23,100 and 23,000 or (50-day SMA) will be the key support zones, while 23,300 and 23,400 may act as key resistance zones for day traders,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
The Nifty 50 breached the 23,000 mark decisively and extended the gains to surge past 23,200 level in yesterday’s intra-day trade. It was the fourth consecutive session that the markets traded closed on a positive note.
“Our short-term target of 23,100 has been achieved and hence we raise it upwards to 23,530 which is the 161.82% Fibonacci extension level of the previous wave,” said Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan.
ALSO READWhy is the stock market up today? 3 reasons fueling the surge
“Index on the daily chart has formed a strong bull candle with a bullish gap below its base (22,940-22,973) signalling continuation of the positive momentum,” said Bajaj Broking in a note.
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services said that now the markets need to hold above the 23,000 zones for an up move towards the 23,300-23,500 zone while support can be seen at 23,000-22,800 zone.
Supportive domestic data indicating a MoM rise in economic activity and the view that more rate cuts are envisaged during the year are adding to the attractiveness of equity, said Vinod Nair, Head of Research, Geojit Financial Services.
» Read More
