Market Outlook for 19 March 2024

Nifty continued to consolidate within a narrow range in Monday’s sessions and ended the day above 22050 with marginal gains.

Nifty Today:

Post the sharp sell-off on last week’s Wednesday, Nifty has traded within a narrow range in the last three sessions. The index has given a breakdown from a Rising Wedge pattern during the sell-off, but the important 40 DEMA support is still intact, and the index has been hovering around this support since last three sessions. In the options segment, open interest addition was seen in 22200 can 22300 call options, while 22000 put has decent open interest outstanding. Thus, the data as well as the chart structure indicates a near term consolidation where 21900 would be seen as an important support while 22200 as the hurdle. Only a breakout beyond this range will lead to the near term directional move. Traders should thus keep a close watch on the range and trade in the direction of the breakout once seen.

                                        Nifty consolidates in a range, 21900 seen as make or break level

The Midcap and the Small Cap indices witnessed a sharp sell-off in last week, but some sharp pullback move in selective stocks has been noted. However, there’s no confirmation yet on the sectors resuming its uptrend as of now and hence, there could be some correction or consolidation in the short term.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: