IGI Logo

Market Closing Commentary

Indian benchmark indices extended gains for a second consecutive session on March 17, with the Nifty sustaining above the 23,550 mark. At close, the Sensex advanced 567.99 points +0.75% to settle at 76,070.84, while the Nifty gained 172.35 points +0.74% to close at 23,581.15.

Crude oil prices have resumed an upward trajectory amid persistent geopolitical tensions and supply-side concerns, raising the risk of renewed inflationary pressures globally. On the sectoral front, the market witnessed broad-based buying, with all indices ending in the green except FMCG -0.7% and IT -1%. Key outperformers included capital goods, telecom, auto, infrastructure, media, metals, realty, and private banks, each registering gains in the range of 1–2%.

Broader markets also participated in the up move, with the Nifty Midcap index rising 1%, while the Small cap index added 0.65%. The FOMC outcome is expected tomorrow with markets closely tracking the Fed’s rate guidance and commentary on inflation trajectory for cues on the timing of potential policy easing.

Nifty Outlook 

 The index formed a small bullish candle with shadows in either direction signaling extension of pullback for the second session in a row amid high volatility on account of the weekly expiry and volatile global cues. Index is seen rebounding in the last two sessions from extreme oversold territory after testing the psychological 23,000 levels.

Going ahead, index holding above Tuesday low (23346) will signal extension of the pullback towards the immediate resistance of 23,700-23,800 levels being the confluence of the last week breakdown area and 8 days EMA. Key short term support is placed in the 22,700–22,400 zone, which coincides with the previous gap area and the 78.6% retracement of the earlier major up move.

Bank Nifty Outlook

The index formed a small bullish candle with shadows in either direction signaling extension of pullback for the second session in a row after recent sharp decline. Volatility is expected to remain elevated in the near term amid uncertain global cues and rising geopolitical tensions, which continue to weigh on overall market sentiment. 

Technically, index moving below Monday’s low 53,250 level could trigger further downside towards the 52,500–51,800 zone in the coming sessions being the 61.8% Fibonacci retracement of the rally from the January 2025 lows and aligns with the low of the breakout candle formed in April 2025.

The index has recently rebounded from the extreme oversold territory. Hence, holding above Monday’s low can led to some consolidation in the range of 55,800-53,250. Index need to start forming higher high and higher low on sustained basis to signal a pause in the current downtrend.

Above views are of the author and not of the website kindly read disclaimer