Tuesday, March 18, 2025

Stock market insights on 19th of March 2025

 




Overview of Benchmark Indices


On Tuesday, March 18, 2025, India's benchmark equity indices, the BSE Sensex and NSE Nifty50, continued their upward trajectory for the second consecutive session, each closing with gains exceeding 1%. The 30-share BSE Sensex reached an intra-day high of 75,385.76 before settling at 75,301.26, marking an increase of 1,131.31 points or 1.53% from its previous close. Similarly, the NSE Nifty50 concluded the day at 22,834, up 325.55 points or 1.45%, after trading between a high of 22,845.95 and a low of 22,599.20.


Performance of Nifty50 Constituent Stocks


The bullish sentiment dominated Dalal Street, with all but three Nifty50 stocks—Bajaj Finserv, Tech Mahindra, and Bharti Airtel—closing in positive territory. Gains among the constituent stocks reached up to 3.35%. The top performers included ICICI Bank, Larsen & Toubro, Shriram Finance, Mahindra & Mahindra, and Tata Motors, significantly driving the index’s upward movement.


Broader Market and Sectoral Indices


Broader market indices mirrored the strength of the benchmarks. The Nifty Smallcap100 index led with a robust gain of 2.71%, while the Nifty Midcap100 index rose by 2.10%. All sectoral indices on the NSE ended in positive territory, with gains ranging up to 3.62%. The Nifty Realty and Nifty Media indices outperformed, each advancing over 3%. Other notable performers included Nifty Auto, PSU Bank, Metal, and Consumer Durables, all of which closed with gains exceeding 2%. Banking stocks also contributed strongly, with the Nifty Bank, Nifty PSU Bank, and Nifty Private Bank indices rising by 1.99%, 2.29%, and 1.91%, respectively.


Technical Analysis of Nifty50


The Nifty50 exhibited strong bullish momentum, breaking through key technical levels. The index surpassed its short-term moving averages (10- and 20-day EMAs) and the consolidation zone of the prior seven sessions, negating a lower high-lower low pattern. It also closed decisively above the midline of the Bollinger Bands, signaling a positive outlook. Experts highlight the next resistance levels at 22,900 (aligned with the 50% Fibonacci retracement of 23,807–21,965) and 23,000 (coinciding with the 50-day EMA and a long-term falling resistance trendline). A breach of these levels could pave the way for a move toward 23,200–23,400, with support now elevated to 22,550–22,500.


The index opened over 150 points higher, sustained above 22,600, and peaked at 22,858 intra-day before closing at 22,834, reflecting a 326-point (1.45%) gain—the largest single-day increase since February 4, 2025. On the daily charts, a long bullish candlestick formed, surpassing the critical resistance zone of 22,700–22,800 and filling a bearish gap from February 24. Analysts anticipate the Nifty advancing to 23,100–23,200 in the near term, with immediate support at 22,700.


 Options Data Insights


Weekly options data indicate that the Nifty50’s next resistance lies at 23,000, where the maximum Call open interest is concentrated, followed by 23,500 and 23,200. Maximum Call writing was observed at the 23,000 strike. On the Put side, the 22,500 strike holds the highest open interest, with notable activity at 22,000 and 22,600, and maximum Put writing at 22,600. This suggests a support base at 22,500 and potential resistance at 23,000.


 Bank Nifty Performance


The Bank Nifty mirrored the Nifty50’s strength, negating its lower high-lower low pattern with a long bullish candlestick on the daily timeframe following a gap-up opening. Closing at 49,315—up 960 points or 1.99%—the index recorded its largest single-day gain since November 25, 2024. It moved above the midline of the Bollinger Bands, approaching the upper band, and surpassed its 20- and 50-day EMAs. It is observed that that the index is progressing toward a target of 49,800, with strength reinforced by closing above the 50-day EMA at 49,250. Support is expected near 49,000, with sustained buying pressure likely to drive the index toward its next key level.


Market Volatility


The India VIX, a measure of market volatility, declined by 1.53% to 13.21, remaining below all key moving averages. This low volatility continues to provide a favorable environment for bullish momentum.


 Conclusion


The Indian equity markets displayed robust performance on March 18, 2025, with benchmark and sectoral indices posting significant gains. Technical indicators suggest a sustained upward trend, supported by strong buying interest and favorable market conditions. Investors and traders should monitor key resistance and support levels in the coming sessions as the indices approach critical thresholds.


Anish Jagdish Parashar 

Indirect tax india. in research 









Disclaimer: Content above reflect personal views of the author and for trading and investment purposes consult your financial advisor;



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