Technical View: Nifty50 extended its upward journey for the third consecutive session on March 19. It crossed the 50% Fibonacci retracement of 22,885 (23,807-21,965). This is a positive sign. With a solid rally in the broader market, the market breadth remained strong for another session. As long as the index sustains above 22,750 (immediate support), an upside move towards 23,000-23,100 cannot be ruled out in the upcoming sessions, according to experts. Nifty50 touched an intraday high of 22,941 in the afternoon and a low of 22,808 in morning trade. It opened higher at 22,875 today. The index finally closed 73 points higher at 22,908. It formed a small bullish candlestick pattern with upper and lower shadows on the daily chart.
The chart shows a breather in the market after a spectacular performance in the previous session. Although the Nifty showed a marginal gain on Wednesday, the overall market breadth looked strong, with the small and midcap indices outperforming. The Nifty Midcap 100 and Smallcap 100 indices gained 2.6 percent and 2.4 percent, respectively.
How can Nifty move on Thursday 20 March
According to Nagaraj Shetti of HDFC Securities , Nifty is currently looking close to the important overhead resistance of around 23,000-23,100 levels. This zone is going to be an important resistance for the market.
He said that some more consolidation or a slight correction from higher levels is expected in the next 1-2 sessions. He said that immediate support in Nifty is seen around 22,800-22,750 levels.
Weekly derivative data indicated that Nifty may be seen trading in the range of 22,500-23,300 in the short term.
How can Bank Nifty move on Thursday, March 20?
Bank Nifty outperformed the benchmark index Nifty 50. It rose 388 points (0.8 per cent) to 49,703 (highest closing level since February 10). It formed a bullish candle on the daily timeframe. The index hit the upper line of the Bollinger Bands and moved close to 49,900. This could be a key resistance for the index in the upcoming sessions.
The index has formed higher high and higher low formation for the last five consecutive sessions. This is a positive sign. In fact, it has seen a decent rally of 2,100 points in the last few days. It is now trading above its 50-day EMA (49,250).
Chandan Taparia of Motilal Oswal Financial Services said that now the banking index has to stay above the 49,500 zone to move towards 50,000 and then 50,250 levels. Chandan Taparia said that on the downside, support is seen at 49,500, after that the next support is in the zone of 49,250.
Talking about India VIX, it remained supportive for the bulls as it was below all the major moving averages. It rose by 0.66 percent to reach the 13.3 zone.
(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.)
