Market Performance: The Indian equity markets ended on a strong note on March 24, with both Sensex and Nifty closing with significant gains. The Sensex surged by 1,078 points to settle at 77984, while the Nifty climbed 307 points to close at 23,658. This marks the sixth consecutive session of gains for the Nifty, driven by broad-based buying and positive investor sentiment.
Key Highlights:
NSE cash market volumes increased by 9% compared to the 10-day average.
The Indian rupee appreciated for the ninth straight day, gaining 33 paise to 85.64 against the US dollar, its highest level since January 1, 2025.
Mid and small-cap indices continued their winning streak, with the Nifty Midcap 100 rising by 1.30% and the Nifty Smallcap 100 gaining 1.10%.
The advance-decline ratio on the BSE stood at 1.53, indicating strong market breadth.
The rally was further fuelled by short covering ahead of the monthly F&O expiry and renewed foreign investor optimism.
Sectoral Performance: All sectoral indices closed in the green. Major gainers included:
Banking Sector: Nifty PSU Banks and Nifty Private Banks led the gains.
Realty and Energy: Realty and Oil & Gas sectors posted strong performances.
Other Sectors: Capital Goods, IT, Power, and PSU Banks saw gains ranging between 1-3%.
Technical Analysis:
Nifty closed above its 200-day exponential moving average (EMA) placed at 23,400.
It surpassed the 38.2% retracement level of the decline from 26,277 (all-time high) to 21,964 (recent low), crossing 23,612.
Immediate resistance is seen at 23,807 (previous swing high), with further resistance at the 50% retracement level of 24,125.
Key support levels are 23,500 and 23,400.
The Relative Strength Index (RSI) remains in bullish crossover territory, with the index holding above its 50-day EMA for three consecutive days.
Rupee Movement: The Indian rupee continued its upward momentum, marking its longest winning streak since January 2024. The appreciation was supported by foreign banks and exporters selling dollars ahead of financial year-end adjustments. The rupee's gains were further bolstered by strong foreign fund inflows into domestic equities and anticipation surrounding the US representative’s visit to India before the April 2 reciprocal tariff implementations.
Near-term USDINR levels: Support at 85.20, resistance at 86.05.
Market Outlook: The Bulls have strengthened their grip, pushing Nifty towards an extremely overbought zone. The immediate resistance at 23,800 is expected to pose a hurdle, with key support at 23,400. While the trend remains positive, a pullback could be expected to facilitate a healthy correction. The broader market sentiment remains upbeat due to moderating inflation, expectations of interest rate cuts, and robust global cues.
Top Gainers & Losers:
Top Nifty Gainers: Kotak Mahindra Bank, NTPC, SBI, Power Grid Corp, Tech Mahindra.
Top Nifty Losers: M&M, Titan Company, IndusInd Bank, Trent, Bharti Airtel.
The overall market outlook remains optimistic, supported by strong domestic fundamentals and positive global trends. However, investors should watch out for potential resistance levels and market corrections in the near term.
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