In the immediate term, the 23,500–23,600 zone is expected to act as key resistance for the Nifty 50. However, support is placed around the 23,000 zone, according to experts.

 

The Nifty 50 continued to build on the previous day’s momentum, rising 1.7 percent on March 25 and soaring 3.7 percent from the recent swing low over the last two consecutive sessions. Global risk sentiment appears to be improving, with rising hopes for peace in West Asia and oil prices falling below $100 a barrel.

Technically, momentum indicators also showed further improvement, with the RSI climbing slightly above 40 with a positive crossover, and the MACD trending upward, though still below the signal and zero lines, while the histogram bars indicated further fading of weakness. All this indicates improving momentum.

 

Overall, the setup remains in favour of bears until the Nifty 50 convincingly moves back above the 23,850 zone, which coincides with the 20-day EMA and the point of reversal of the lower high–lower low formation. In the immediate term, the 23,500–23,600 zone (61.8 percent Fibonacci retracement of the rally from the April 2025 low to the January 2026 high, and the upper end of the bearish gap of March 19) is expected to act as key resistance for the Nifty 50. However, support is placed around the 23,000 zone, according to experts.

 

The Nifty 50 opened above the psychological 23,000 mark and remained higher throughout the session. The index hit an intraday high of 23,465 in the latter part of the session and closed at 23,306, up 394 points (1.72 percent). It formed a long bullish candle with a minor upper shadow on the daily timeframe, indicating a healthy bias despite mild pressure at higher levels.

 

The market action over the last two sessions indicates the formation of a crucial bottom reversal around the 22,500 level (March 23). The underlying trend of the market continues to be positive, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, further sustainable upside from here could push the Nifty towards the next target of 23,850 in the near term. Any consolidation or dip from here could find support around the 23,000 level, he added.

 

After Wednesday’s rally, the monthly options data indicated that the Nifty 50 is expected to trade in the 23,000–24,000 range in the short term. The maximum Call open interest was seen at the 24,000 strike, followed by the 23,500 and 23,000 strikes, with the maximum Call writing at the 24,000, 23,400, and 24,100 strikes.

 

On the Put side, the 23,000 strike holds the maximum Put open interest, followed by the 23,200 and 22,800 strikes, with the maximum Put writing at the 23,000, 23,200, and 23,300 strikes.

 

Meanwhile, the fear index India VIX remained in an elevated zone, though it cooled moderately by 0.4 percent to 24.64. It needs to fall sharply towards the 20–18 levels to bring bulls into a comfort zone.

 

The market will remain shut on March 26 on account of Shri Ram Navami.

 

Bank Nifty

 

The banking index also witnessed follow-up buying after the recent sharp declines and outperformed the benchmark Nifty 50, rising 1,102 points (2.10 percent) to 53,708 on Wednesday, and gaining 4.6 percent over the last two sessions from the recent swing low.

 

The index needs to move above 54,700 — the next crucial hurdle (which coincides with the 50 percent Fibonacci retracement of the rally from the March 2025 low to the February 2026 high). This is followed by 55,600 (20-day EMA) as the next key resistance. Meanwhile, support is seen at 53,000 (61.8 percent Fibonacci retracement), according to experts.

 

Momentum indicators show a bullish crossover in the RSI along with a positive divergence, supporting the ongoing bounce.

 

“Resistance is placed in the 54,500–54,700 zone, while support is seen at 53,000. Sustaining above 54,000 is crucial for further upside; otherwise, selling pressure may re-emerge,” said Vatsal Bhuva, Technical Analyst at LKP Securities.

 

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