Will Nifty 50 Extend Gains for the Fourth Consecutive Day? Bank Nifty Eyes 48,800 Bounce
Will Nifty 50 Extend Gains : The Nifty 50 has shown remarkable resilience, rebounding strongly after three weeks of losses and forming a bullish candlestick pattern on the weekly charts. Despite some consolidation on March 7, the overall trend remains positive. The key level to watch is 22,500—if this support holds, the index could aim for the resistance zone of 22,750-22,800. Meanwhile, the Bank Nifty is attempting to regain momentum above 48,800, with 47,800 serving as a crucial support level.
Market Performance on March 7
On Friday, March 7, the Nifty 50 closed at 22,553, gaining 8 points, while the Bank Nifty fell 130 points to settle at 48,498. The market breadth was positive, with 1,693 advancing stocks against 957 declining stocks on the NSE.
Nifty 50 Outlook: Can the Rally Continue?
The recent bounce in Nifty comes after a sharp correction, and analysts believe that while the trend looks positive, traders should remain cautious at higher levels.
Technical Insights
According to Rajesh Bhosale, Technical Analyst at Angel One:
- Support Levels: 22,350 – 22,250
- Resistance Levels: 22,700 – 22,800
- Strategy: Continue buying on dips rather than chasing momentum.
Similarly, Rajesh Palviya of Axis Securities highlights that 22,750 is a crucial resistance level. A decisive breakout above this zone could push the index toward 23,300, while a fall below 22,250 might invite selling pressure.
Expert Trading Strategies
- Buy Nifty Futures around 22,480, with a stop-loss at 22,380, targeting 22,650-22,750 (Axis Securities).
- Buy on dips around 22,350-22,400, keeping a strict stop-loss at 22,250, aiming for 22,750 (Mehta Equities).
Bank Nifty: Will It Hold Above 48,800?
Unlike the Nifty 50, the Bank Nifty saw a slight decline on March 7. However, it remains above the crucial support level of 48,000, and experts anticipate a bounce if the index sustains these levels.
Key Levels to Watch
- Resistance Levels: 48,900 – 49,500
- Support Levels: 48,000 – 47,800
According to Rajesh Bhosale:
- The 89 WEMA near 47,800 has provided strong support.
- A breakout above 49,000 could trigger fresh buying momentum.
Rajesh Palviya adds that a move above 48,750 could confirm a trend reversal, pushing the index toward 49,500.
Expert Trading Strategies
- Buy Bank Nifty Futures around 48,300, with a stop-loss at 48,000, targeting 48,900 – 49,500 (Mehta Equities).
- Sell Bank Nifty Futures near 48,650, with a stop-loss at 48,850, targeting 48,300 – 48,200 (Axis Securities).
Financial Ratios & Key Data
| Metric | Nifty 50 | Bank Nifty |
|---|---|---|
| Closing Price (March 7) | 22,553 | 48,498 |
| Weekly Gain/Loss | +428 points | +153 points |
| Key Resistance Levels | 22,700, 22,800 | 48,900, 49,500 |
| Key Support Levels | 22,350, 22,250 | 48,000, 47,800 |
| RSI Indicator | Bullish | Neutral |
| Strategy | Buy on dips | Cautiously bullish |
Conclusion
Both Nifty 50 and Bank Nifty are showing signs of recovery. While the Nifty looks poised to extend gains if 22,500 holds, traders should watch for a breakout above 22,750 for a stronger uptrend. Bank Nifty, on the other hand, needs to sustain above 48,000 for a possible move towards 49,500. With market sentiment improving, a cautious yet optimistic approach is advised.
Q&A for Quick Insights
1. Is Nifty 50 likely to extend its gains?
Yes, if 22,500 holds as support, the index could target 22,750-22,800.
2. What are the key resistance and support levels for Nifty 50?
- Resistance: 22,700, 22,800
- Support: 22,350, 22,250
3. Can Bank Nifty reclaim 48,800?
Yes, if it holds 48,000, a move toward 48,900-49,500 is possible.
4. What is the recommended trading strategy for Nifty?
Buy on dips around 22,350-22,400 with a stop-loss at 22,250, targeting 22,750.
5. What are the major risk factors in the current market?
- Failure to hold 22,500 in Nifty and 48,000 in Bank Nifty could trigger selling pressure.
- Resistance at 22,750 and 49,000 could slow down the uptrend.
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like MoneyControl, ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.