March 28 Market Outlook: What to Expect from Nifty 50 and Sensex in Indian Stock Trading

India’s stock market is poised for a cautious opening on Friday, as global markets have shown signs of weakness. Early indicators from the GIFT Nifty suggest that the Sensex and Nifty 50 may start the day on a subdued note, with the GIFT Nifty hovering around 23,755, reflecting a slight dip of about 22 points from the previous close of Nifty futures.

On Thursday, the domestic equity indices managed to close higher, gaining nearly half a percent. The Sensex rose by 317.93 points (or 0.41%) to finish at 77,606.43, while the Nifty 50 increased by 105.10 points (or 0.45%), settling at 23,591.95.

Sensex Outlook

The Sensex displayed resilience on Thursday, bouncing back to end the day on a positive note. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the key support level for day traders stands at 77,100. As long as the Sensex remains above this threshold, the bullish momentum is expected to persist.

Resistance Levels: 78,000 and 78,200
Support Level: 77,100
Potential Decline: If the index falls below 77,100, it could slip to 76,800 – 76,500.

Nifty 50 Forecast

The Nifty 50 rebounded on March 27 after a brief downturn, closing the day up by 105 points. Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, noted that a long positive candle formed on the daily chart, indicating a strong comeback of bullish sentiment after the prior bearish session.

Support Zone: 23,400, which aligns with the 200-day Exponential Moving Average (EMA).
Resistance Level: Potential resistance around 23,850 in the short term.
Chart Patterns: The presence of higher tops and bottoms indicates a constructive trend.

Key Insights from Technical Analysts

Om Mehra, a Technical Analyst from SAMCO Securities, emphasized the bullish signal from a piercing pattern candle, suggesting continued upward momentum.
The Nifty is currently trading above the 100-EMA, reinforcing the strength of the market.

Bank Nifty Predictions

The Bank Nifty index experienced a rise of 0.72%, closing at 51,575.85. This index also formed a bullish pattern, indicating positive trends ahead.

Support Level: 51,000
Resistance Levels: 51,880 and 52,000
Strategy Recommendation: Traders should consider a "buy-on-dips" approach, particularly while the index remains above the 200-Days Simple Moving Average (200-DSMA).

Conclusion

As traders prepare for today’s market session, the sentiment appears cautiously optimistic. The resilience shown by the Sensex and Nifty 50 indicates potential buying opportunities, especially given the positive technical indicators. Key support and resistance levels will be crucial for guiding trading strategies throughout the day.

For those interested in further analysis of market trends and stock recommendations, consider exploring insights from seasoned analysts and financial experts. Stay informed and adapt your strategy accordingly to navigate the evolving landscape of the Indian stock market.