Nifty Seeks Follow-up Buying, Eyes 23,100; Bank Nifty Targets 53,000
The Nifty 50 witnessed a relief rally of nearly 1.8 percent on March 24 after a 2.6 percent correction in the previous session, tracking hopes of de-escalation in the Iran conflict. The index also almost filled the Monday’s long bearish gap, and while there is some improvement in momentum indicators, the overall setup still favours the bears.
Hence, follow-through buying interest is needed in the upcoming sessions. Overall, the index needs to reclaim and sustain above the 24,000–24,100 zone for a strong uptrend to emerge. In the immediate term, the index is expected to face resistance at the 23,000-23,100 levels, followed by 23,400–23,500. Immediate support is seen at 22,700, followed by 22,500, according to experts.
Nifty Outlook for March 25
Nifty seeks follow-up buying, eyes 23,000-23,500. Nifty outlook suggests that the index is likely to remain within a broad range of 22,500–23,500 in the short term. Within this range, the 23,000 level may act as a crucial pivot for directional movement on either side.
Monthly options data suggests that the Nifty 50 is likely to remain within a broad range of 22,500–23,500 in the short term. Within this range, the 23,000 level may act as a crucial pivot for directional movement on either side. The maximum Call open interest was at the 23,500 strike, followed by the 23,000 and 23,700 strikes. Maximum Call writing was seen at the 23,000, 22,900, and 23,500 strikes. On the Put side, the 23,000 strike holds the maximum open interest, followed by the 22,500 and 22,800 strikes. Maximum Put writing was observed at the 23,000, 22,900, and 22,800 strikes.
Bank Nifty Surges Over 2%, Targets 53,000
The banking index also witnessed a gap-up opening and ended the day at 52,606, registering a healthy gain of 1,168 points (2.27 percent). On the daily chart, it formed a small-bodied candle with shadows on both sides, indicating a phase of indecision following the recent pullback. However, the index failed to fill Monday’s long bearish gap and could not reclaim the 53,000 zone, though the gap was partially filled.
Overall, the setup remains weak despite Tuesday’s pullback. The RSI rose to 31.37 and showed a bullish crossover but remains below the 40 mark, while the MACD continues to stay well below the reference and zero lines. Bank Nifty analysis suggests that the 53,000–53,100 zone will act as an immediate resistance area for the index. A sustained move above 53,100 could lead to a further extension of the pullback rally towards the 53,600 level in the near term.
VIX Eases Over 7% but Remains Elevated
India VIX, the fear gauge, declined 7.44 percent to 24.74, offering some comfort to bulls, though it remains in an elevated zone. A consistent decline below the 20 mark is necessary for bulls to regain strong confidence. VIX analysis suggests that the fear gauge is likely to remain elevated in the short term, indicating a high level of volatility in the market.
In conclusion, the Nifty 50 is likely to remain within a broad range of 22,500–23,500 in the short term, with the 23,000 level acting as a crucial pivot for directional movement on either side. The banking index is expected to face resistance at the 53,000–53,100 zone, while the VIX is likely to remain elevated in the short term. Nifty trading strategies suggest that investors should remain cautious and look for opportunities to buy on dips.