Market View: Today, March 18, the bulls strengthened their support for Nifty50. This not only helped the index move beyond the short-term moving averages (10 and 20-day EMAs) but also helped it break the consolidation zone of the last seven sessions and negate the lower high-lower low formation. Moreover, the index also closed decisively above the midline of the Bollinger Bands. This is a positive sign. The next resistance for the index is seen at 22,900 and 23,000. Crossing these zones could open the doors for the index to 23,200-23,400. However, experts say that the support in the index has now moved to 22,550-22,500.
Nifty opened with a gain of over 150 points and remained above 22,600 throughout the session. As the day progressed, the index continued its upward journey and touched an intraday high of 22,858. The index then closed at 22,834, up 326 points (1.45%). This was its biggest single-day gain since February 4.
The benchmark index formed a long bullish candlestick pattern on the daily chart. It broke the crucial overhead resistance around 22,700-22,800 levels. It completely filled the bearish gap seen since February 24.
How can Nifty move tomorrow on 19th March
"This is a positive sign," said Nagaraj Shetti of HDFC Securities. "So, after moving sharply above the resistance, we can expect the Nifty to move towards the next resistance level of 23,100-23,200 in the next few sessions. The immediate support is at 22,700."
Weekly options data shows that Nifty50 may face its next resistance at 23,000. Maximum call open interest is placed there, while support is seen at 22,500 levels.
Shrikant Chouhan of Kotak Securities also believes that the short-term market outlook looks bullish. But he advised that for day traders, buying on intraday corrections and selling on rallies would be the ideal strategy.
How can Bank Nifty move tomorrow on 19th March
Bank Nifty also decisively negated the lower high-lower low formation with a long bullish candlestick formation on the daily timeframe after a gap-up opening. The index not only closed above the midline of the Bollinger Bands but also moved closer to the upper end of the Bollinger Bands. It crossed the 20 and 50-day EMAs. It closed at 49,315, up 960 points or 1.99%. It saw the biggest single-day gain since November 25, 2024.
Anshul Jain of Laxmisree Investments said, "Bank Nifty has been steadily moving towards our target of 49,800, which we have maintained since last week. The index touched the 50-day EMA and closed at 49,250. Any decline towards 49,000 is likely to find strong support."
Meanwhile, India VIX, the volatility index, remained in the lower zone on the last tick and below all major moving averages. It fell by 1.53% to the 13.21 zone. This zone has been consistently providing comfort to the bulls.
(Disclaimer: The views and investment advice expressed on Moneycontrol.com are the personal views and opinions of investment experts. Moneycontrol advises users to seek advice from certified experts before taking any investment decision.)
