Nifty Breakout Alert
The Indian stock market has been on a strong upward trend, closing higher for the fifth straight day on Friday, March 22. The BSE Sensex gained 557.45 points, ending at 76,905.51, while the Nifty 50 climbed 159.75 points to settle at 23,350.40.
According to market experts, this rally is mainly due to signals from the US Federal Reserve about a possible interest rate cut and increased foreign investment in Indian markets. These factors have boosted investor confidence and pushed Nifty towards new highs.
Nifty Support and Resistance Levels
To understand where the market might move next, traders look at key support and resistance levels.
Resistance Levels (Where the Market May Face Selling Pressure)
Short-Term Resistance: 23,400 and 23,600
Next Target Levels: 23,800 – 24,100
Support Levels (Where the Market May Find Buying Interest)
Immediate Support: 23,200 – 23,250
Strong Support: 22,750 – 23,000
These levels will help investors track whether Nifty continues its uptrend or faces a correction.
Technical Analysis: Nifty on a Bullish Path
Several technical indicators suggest that Nifty may continue to rise in the coming sessions.
Bullish Engulfing Candle Formation
According to Nagaraj Shetty, a technical analyst at HDFC Securities, Nifty has successfully crossed the 23,000 resistance level, indicating strong bullish momentum.
Additionally, a bullish engulfing candle has formed on the weekly chart. This is a strong sign that the market could continue its upward movement in the short term.
Trendline Breakout – More Upside Possible
Rupak Dey from LKP Securities explains that Nifty has given a falling trendline breakout. This means that the previous downward trend has been broken, and buyers are now taking control.
If Nifty stays above 23,400, we could see a further 200-point rally, pushing it closer to 23,600 or beyond.
Key Breakout Level at 23,600
According to Ajit Mishra, a senior analyst at Reliance Broking, Nifty has touched a critical resistance near 23,400, which is close to the moving average ribbon.
If this level is broken and sustained, Nifty could move towards 23,800 – 24,100 in the coming weeks.
Indicators Suggest More Strength in Nifty’s Weekly Chart
Om Mehra, an analyst at Samco Securities, believes Nifty is showing strong bullish signals in its weekly chart.
Relative Strength Index (RSI): A key indicator that measures market momentum is at strong levels, showing that buyers are still in control.
Exponential Moving Average (EMA): A bullish crossover between the 9 EMA and the 50 EMA is expected soon. This could push the market even higher.
Key Levels to Watch for Nifty’s Next Move
Resistance Levels (Possible Upside Targets)
23,410 – First resistance at 78.6% Fibonacci retracement level
23,500 – Major resistance near 100-Day Moving Average (DMA)
Support Levels (Possible Downside Protection)
23,240 – 23,180 – Strong support zone where buyers may step in
Will Nifty Cross 23,800? What Should Investors Do?
Experts believe that if Nifty sustains above 23,400 – 23,600, it has the potential to reach 23,800 – 24,100. However, markets do not move in a straight line.
Given the recent rally, a small correction or sideways consolidation is possible before the next big move. Traders and investors should remain cautious and keep an eye on these important levels.
For now, the trend remains bullish, but it is always advisable to manage risk and avoid excessive speculation. The market could continue its uptrend, but unexpected global or domestic factors could lead to short-term volatility.
Conclusion: What to Expect Next Week?
If Nifty stays above 23,400, we may see an upside move towards 23,800 – 24,100.
If Nifty falls below 23,200, it could test the 22,750 – 23,000 support zone.
Traders should watch global cues and any major economic announcements for further direction.
With strong technical signals, Nifty looks set for further gains, but investors should remain cautious and keep an eye on crucial support and resistance levels.