On Tuesday, the Indian stock market is expected to see a positive opening, influenced by robust global market trends. The Nifty 50 and Sensex indices are poised for a gap-up start, as indicated by movements in the Gift Nifty, which is hovering around 22,744—a premium of nearly 160 points over the last closing figures of Nifty futures. Following a strong performance on Monday, where the Nifty 50 closed above 22,500, traders are keenly watching the market’s direction.

Positive Momentum for Sensex

The Sensex experienced a notable gain of 341.04 points (0.46%), finishing the day at 74,169.95. This upward movement has established a support level near 73,800, allowing the index to rebound effectively. Shrikant Chouhan, Head of Equity Research at Kotak Securities, observed that a bullish candle formation on the daily charts signals ongoing positive sentiment as long as the Sensex stays above 73,800. The immediate resistance level for the bulls is anticipated to be around 74,500.

• Potential Breakout Levels:
  • Resistance: 74,500
  • Target after breakout: 74,700 – 74,800
  • Support: 73,800

Chouhan cautioned that if the Sensex dips below 73,800, it might prompt traders to exit long positions, altering market sentiment.

Nifty 50: Trading Insights

The Nifty 50 maintained a range-bound motion on March 17, concluding with a gain of 111 points. According to Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, the emergence of buying interest around 22,300 levels is noteworthy. The index has been oscillating between 22,300 and 22,600 and is currently positioned near the upper limit of this range.

• Key Levels to Watch:
  • Resistance: 22,600 (breakout needed for further gains)
  • Support: 22,300

Shetti emphasized that a decisive move beyond 22,600 could propel the Nifty toward levels between 22,800 and 23,000. Conversely, failure to maintain these highs may push it back down to 22,300.

Bank Nifty: A Steady Climb

The Bank Nifty closed at 48,354.15, marking a rise of 293.75 points (0.61%). This upward trend has formed a bullish candle with higher highs and lows, suggesting a consolidation phase with a positive outlook. Immediate resistance is set around 48,600, coinciding with last week’s high and the 20-day EMA.

• Resistance & Support Levels:
  • Immediate Resistance: 48,600
  • Potential Target: 49,200
  • Immediate Support: 48,150 (stronger at 48,000)

Om Mehra, a Technical Analyst at SAMCO Securities, pointed out that the Bank Nifty is firmly positioned above the declining trendline, indicating a potential short-term base formation. A sustained move above the 23.6% Fibonacci retracement level around 48,400 could lead to further upward movement toward 48,800 – 49,000.

Conclusion

As the Indian market gears up for Tuesday, traders and investors should closely monitor these key levels across the Sensex, Nifty 50, and Bank Nifty. With bullish signals prevailing, there’s a sense of optimism in the air, but caution remains prudent as the market navigates through these trading ranges. For those looking to engage in the stock market, keeping an eye on support and resistance points can provide valuable insights for strategic decisions.