Indian Equity Market Report - March 21, 2025
Market Performance: On March 21, Indian equity markets ended on a strong note, extending their winning streak for the fifth consecutive session. The BSE Sensex surged by 557.45 points or 0.73% to close at 76,905.51, while the NSE Nifty rose 159.75 points or 0.69% to settle at 23,350.40. The markets opened on a cautious note but gained momentum as the session progressed, with broad-based participation leading to a robust finish.
Sectoral & Broader Market Performance:
Energy, banking, and pharma sectors posted significant gains.
IT and FMCG sectors remained subdued.
Midcap and small-cap indices outperformed the benchmark, rising between 1.5% and 2%.
The BSE Midcap and Smallcap indices recorded gains of 1-2%.
Oil & gas, media, and telecom sectors surged by 2% each, while consumer durables and metal sectors saw some declines.
Technical Analysis:
Nifty successfully breached the 23,300 resistance level and tested 23,400 before closing slightly lower.
A decisive breakout above 23,400 could drive Nifty toward the 23,800-24,100 range.
Immediate support is placed at 23,000, with strong support at 22,750.
Bank Nifty closed positively at 50,594, forming a bullish candle on both daily and weekly charts.
The next major resistance for Bank Nifty is near 50,650, and a breakout above this level could trigger further gains.
Traders are advised to adopt a "buy on dips" strategy as long as Nifty remains above 23,000.
Key Gainers and Losers: Gainers: BPCL, ONGC, SBI Life Insurance, NTPC, Bajaj Finance. Losers: Hindalco Industries, Wipro, Trent, Infosys, Tata Steel.
Market Sentiment & Influences:
Positive domestic factors outweighed global market volatility.
Strong FII inflows supported market gains.
The rupee strengthened by 0.40 against the dollar, closing at 85.94, driven by improved capital flows and a weaker dollar following the Fed’s decision to hold rates steady.
Investors engaged in short covering ahead of the upcoming monthly F&O expiry, contributing to the market rally.
Outlook & Strategy:
Nifty's next resistance levels are at 23,520 (100-day SMA) and 23,600.
If Nifty decisively moves above 23,600, a new leg of the rally could begin.
Failure to break 23,400 could result in near-term consolidation.
With the broader market showing resilience and continued FII participation, selective stock-picking with a favorable risk-reward ratio is recommended.
Conclusion: Indian equity markets demonstrated strong momentum on March 21, backed by bullish sectoral performance and supportive global cues. The trend remains positive, with key levels to watch for further market movement. Investors should maintain a cautious but optimistic approach, focusing on fundamentally strong stocks and sectors showing sustained growth.
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