Posted on March 19, 2025, by Niftynews
The Nifty and Sensex are primed for their third consecutive day of gains, continuing the positive momentum seen earlier this week. With sentiment improving across the market, there’s potential for further upside, with Nifty facing key resistance at 23,000. A decisive breakout above this level could lead to targets of 23,800 and 24,200 in the near future.
3 Key Levels for Nifty and Sensex to Watch
For Bank Nifty, the index has surpassed the 49,000 mark and successfully breached the important 50-EMA at 49,200, strengthening the overall bullish sentiment. Watch for a key support level at 48,900, with resistance at 50,000.
A Sharp Rebound for Nifty and Sensex in March
March has proven to be a game-changer for the Nifty and Sensex, offering a much-needed breather. The Nifty has surged by 3.2% so far this month, helping reduce year-to-date losses from 16.4% to 13.1%. This positive momentum was most evident on March 18, with the Sensex climbing by over 1,200 points and the Nifty rising by more than 300 points, closing at approximately 22,800.
Sectoral Performance: Broad-Based Gains Leading the Way
The rally was widespread, with all sectoral indices showing strong performance. Leading the charge were Nifty Auto, Bank, PSU Bank, FMCG, and Metal, which saw rises of 1.5-2% during the session. The Nifty Pharma, Consumer Durables, and Energy sectors also gained over 1%.
Both the midcap and smallcap indices reflected this positive momentum, outperforming the frontline indices with gains of 2.2% and 2.71%, respectively. However, despite these gains, both indices are still down by 14% and 18% year-to-date.
Strong Domestic Economic Indicators Supporting Market Optimism
Positive domestic economic indicators provide further support for the Nifty and Sensex rally. These include:
- Q3 FY25 GDP growth at 6.2%
- A 5.1% rise in IIP (Index of Industrial Production)
- Gross tax collections up by 16%
- A narrowing trade deficit
- CPI inflation easing to 3.6%
Despite these positive signs, experts caution that global risks—such as trade wars—could still pose challenges to a sustained rally.
Focus on the Federal Reserve’s Decisions and Global Market Cues
Investors are now looking ahead to the March FOMC meeting of the US Federal Reserve, where it’s widely expected that rates will remain unchanged between 4.25-4.5%. Market participants will also be watching for updated economic projections, which could influence future market direction.
Key Levels to Monitor for the March 19 Trading Session
- Nifty: Having breached the resistance level of 22,650, the Nifty has formed a strong bullish candle. The next resistance is at 23,000, and a decisive breakout above this level could propel the Nifty towards 23,800 and 24,200.
- Sensex: The Sensex has shown impressive momentum, climbing over 1,200 points on March 18. Watch for further rallies as it tracks the broader market.
- Bank Nifty: The index has surpassed 49,000 and breached the 50-EMA at 49,200, reinforcing the positive bias. Key support for Bank Nifty is at 48,900, with resistance at 50,000.
- Nifty PCR: The Put-Call Ratio (PCR) increased to 1.29, signaling a stronger bullish sentiment. A PCR above 1 indicates that more traders are selling puts, showing optimism in the market’s direction.
- India VIX: The India VIX dropped to 13.21, its lowest since December 2024, signaling reduced market anxiety and reinforcing bullish sentiment.
Conclusion
As the Nifty and Sensex look set for a third consecutive day of gains, all eyes are on key levels like 23,000 for Nifty and 49,000 for Bank Nifty. While the market is showing positive momentum, external risks remain, so it’s crucial to continue monitoring both global and domestic cues for potential impacts on market direction.
