Nifty Prediction For Tomorrow, March 25: Indian stock market witnessed a strong rebound on Tuesday (March 24), recovering sharply after Monday’s steep decline. The stock market was supported by easing tensions in the Middle East.
The Nifty opened on a firm note following positive global signals and extended gains as the session progressed, despite volatility related to the weekly expiry. It eventually settled at 22,912.40, up 399.75 points or 1.78 per cent.
Sectoral participation was broadly positive, as all the indices closed in the green. Nifty Media, Private Banks, and Autos posted sharpest gains.
Nifty midcaps and smallcaps stole the show, as Nifty Midcap 100 climbed 2.60% and Nifty Smallcap 100 rose 2.63%.
Market breadth flipped bullish, with BSE advance-decline ratio soaring to 2.27 after yesterday's collapse.
Nifty Top Gainers, Losers
IndiGo, L&T, and Bajaj Finance led Nifty gainers, while Coal India, Power Grid, and Adani Enterprises bore the brunt of selling pressure as top laggards.
Stock Market Rally Reason
Sentiment improved significantly after reports of easing tensions between the US and Iran, including a proposed five-day ceasefire, which helped cool crude oil prices from elevated levels. This development reduced concerns around inflation and global economic stability, triggering short covering and fresh buying in equities.
However, despite the recovery, crude oil remains elevated near the $100+ mark, and persistent FII outflows continue to cap overall optimism.
Nifty Support And Resistance Levels Tomorrow
Ajit Mishra, SVP, Research, Religare Broking, said that Nifty may face immediate resistance around 23,200 in the case of a further rebound, with a stronger resistance in the 23,400–23,600 zone.
On the downside, the 22,700–22,500 band is likely to act as a immediate support area if the correction resumes.
Vinay Rajani, Senior Technical Research Analyst, HDFC Securities, said that today's bounce kindles hopes for a sustained pullback, but follow-through gains are needed to signal a trend reversal. Nifty faces stiff resistance at 23,378, with support clustered near 22,600.
Nifty Chart Candle
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said that a small bull candle was formed on the daily chart with upper and long lower shadow.
Technically, this market action indicates a sharp bounce back in the market amidst high volatility. The negative chart pattern like lower tops and bottoms is continued and present up move is expected to be a new lower top of the pattern, which needs to be confirmed at the highs.
"A sustainable bounce back of Tuesday could be a cheering factor for bulls to make a comeback, but the market needs to show strength by sustaining above the crucial hurdles like 23500-23600 levels to consider this as a near term bottom reversal pattern," the market expert said.
"Any failure to sustain the highs at the hurdle could possibly drag Nifty down to 22600-22500 levels again in the near term," the expert added.
