The Indian stock market witnessed a surge in momentum on March 28, the monthly Futures and Options (F&O) expiry day, as both the Nifty 50 and the Bank Nifty displayed strong gains. This upswing comes after a period of consolidation, indicating renewed investor confidence and bullish sentiment.
Nifty 50 Performance:
- The Nifty 50 closed above the crucial 22,300 mark, hinting at the possibility of achieving a new record high in the upcoming sessions of the April series. This milestone is significant as it underscores the resilience of the market amidst recent fluctuations.
- Analysts suggest that sustaining above 22,300 is key for further upward movement, with immediate support seen around 22,200. This reflects a positive outlook for the Nifty 50 index.
BSE Sensex and Nifty 50 Rally:
- On March 28, the BSE Sensex rallied impressively by 655 points to reach 73,651, while the Nifty 50 surged 203 points to close at 22,327. This robust performance was accompanied by the formation of a bullish candlestick pattern on the daily charts, indicating strong buying sentiment.
- Notably, the Nifty 50 broke above a downward-sloping resistance trendline with above-average volumes, signaling a potential continuation of the upward trend.
Bank Nifty Performance:
- The Bank Nifty also remained in the spotlight, registering gains for another session and closing above the significant 47,000 mark at 47,125. Despite some profit booking observed at higher levels, the banking index maintained its position above key moving averages, supported by healthy volumes.
- Analysts foresee the Bank Nifty potentially rallying further, targeting levels between 47,500 and 47,800, as long as it remains above the crucial 47,000 mark.
Pivot Point Analysis:
- Pivot point calculations for both the Nifty 50 and the Bank Nifty provide insights into potential resistance and support levels. For the Nifty 50, resistance is anticipated at 22,359, 22,553, and 22,688, with immediate support levels at 22,201, 22,118, and 21,983. Similarly, for the Bank Nifty, resistance levels are projected at 47,181, 47,510, and 47,744, with support levels at 46,897, 46,752, and 46,518.
Investor Activity:
- Provisional data from the National Stock Exchange (NSE) indicates that foreign institutional investors (FIIs) net bought shares worth Rs 188.31 crore, while domestic institutional investors (DIIs) purchased Rs 2,691.52 crore worth of stocks on March 28. This suggests a balanced investor sentiment with participation from both domestic and foreign entities.
In conclusion, the market displayed strong momentum on the monthly F&O expiry day, with both the Nifty 50 and the Bank Nifty witnessing notable gains. While technical indicators and pivot point analysis provide valuable insights, investor activity remains a key determinant of market direction in the coming sessions. Overall, the bullish sentiment prevailing in the market suggests potential for further upside movement, provided key support levels are maintained.
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