Shrikant Chouhan of Kotak Securities: "We believe that the short-term market formation is still on the positive side, but due to temporary overbought conditions, we might see some profit booking at higher levels"
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, March 24, 2025: The benchmark indices continued their positive momentum for the sixth day in a row, with the Nifty ends 308 points higher and the Sensex up by 1079 points. Among sectors, almost all major sectoral indices traded in positive territory, but the Defence and PSU Bank indices outperformed, rallying over 3 percent. Technically, after a gap-up open, the market maintained positive momentum throughout the day. A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate further upward movement from the current levels.
We believe that the short-term market formation is still on the positive side, but due to temporary overbought conditions, we might see some profit booking at higher levels. For day traders, the 23,800-23,900/78500-78700 range would be the key resistance areas, while 23,500-23,400/77500-77200 could act as significant support levels for trend-following traders. However, if the market falls below 23,400/77200, traders may prefer to exit their long positions.
As per Satish Chandra Aluri, Lemonn Markets Desk, Benchmark indices extended gains for sixth straight session on Monday, on positive global cues, building on the positive momentum from last week as bargain hunting continued. Broader Mid and Small caps as well as all major sectors ended the day with strong gains in continued broad-based rebound.
After posting best weekly gain in more than 4 years, last week, benchmarks continued their uptrend supported by positive global cues as Trump appeared to soften tone on reciprocal tariffs set to take effect on April 2. Although, uncertainty is still high, reports that some sectors will be exempted initially has lifted sentiment with US futures trading positive in Asia trade.
Continued foreign buying seen in recent sessions as USD weakens also lifted expectations of renewed buying interest after valuation correction. PSU banks and Private banks are the top performers on expectations of another RBI rate cut on April 5.
Technically, Nifty 50 have tested 23700 resistance level before closing lower around 23658. Expect 23700-23800 to act as immediate resistance on the upside while 23400 may act as immediate support on the downside. Bank Nifty posted another session of strong gains continuing recovery, with index now critically placed at crucial level of 51700. On the upside, 52000 acts as immediate resistance while on the downside, 51000 will be key support zone.
