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Stock market update: Nifty and Nifty Bank analysis for 18 March The Indian stock market opened with a gap-up on Thursday, 18 March, and maintained strong bullish momentum throughout the session. After consolidating in the 22,315–22,677 range for several sessions, the Nifty 50 decisively broke out, signaling renewed strength. The Nifty 50 surged 1.
45%, gaining 325.55 points to close at 22,834.30, while the Sensex jumped 1.
52% (1,128.09 points) to settle at 75,297.68.
The Nifty Bank index also saw a strong rally, closing 1.99% higher at 49,314.50, holding its gains despite mild profit booking.
Read this | Smallcap survivors: These sectors weathered the market correction The decisive breakout in Nifty suggests continued bullish momentum, with key support now shifting to 22,677. If the momentum sustains, the index could test 23,000 in the near term. For Nifty Bank , holding above 49,000 will be crucial for further upside, with the next resistance seen around 49,800–50,000.
With strong participation across sectors and broad-based buying, the market appears to be in a firm uptrend. However, traders should watch for any profit booking at higher levels while keeping an eye on global cues and institutional flows. Sector highlights Realty led the rally, jumping 3.
16%, followed by Auto (+2.38%) and Midcap Select (+2.29%).
Broad-based buying across sectors reflected rising investor confidence, hinting at sustained upside momentum. Top gainers & losers Gainers: ICICI Bank (+3.22%), M&M (+3.
19%), and L&T (+3.06%) led the charge. Losers: Bajaj Finserv (-1.
44%), Bharti Airtel (-0.72%), and Tech Mahindra (-0.66%) were among the few laggards.
However, the overall market sentiment remained overwhelmingly positive, with only a handful of stocks closing in the red. Stock market outlook As highlighted in earlier reports, 22,660 was a key resistance level, which was decisively breached today, leading to a strong rally up to 22,848. The maximum open interest on the put side has shifted from 22,500 to 22,600, indicating strong support, while on the upside, the highest call OI at 23,000 could act as resistance.
Despite this, the overall bias remains bullish. For the first time since the decline from 23,800, Nifty has closed above the 200-hour EMA on the hourly chart, signaling continued bullish momentum. Additionally, a golden crossover of the 20 EMA over the 50 EMA on the hourly chart further supports this trend.
On the daily chart, Nifty is still trading below its 50, 100, and 200 DEMA but managed to close above the 20 DEMA yesterday. While it's too early to confirm a long-term trend reversal, the short-term outlook remains bullish, with market strength evident in lower time frames. Technical indicators: Nifty on hourly chart Relative Strength Index (RSI): The 14-period RSI stands at 74, indicating overbought conditions.
Stochastic Oscillator (STOCH): The STOCH (14,1,3) is at 98, also signaling overbought conditions. Moving Average Convergence Divergence (MACD): The MACD (12,26) value is 94, suggesting a buy signal. Average Directional Index (ADX): The ADX (14) is at 25, supporting strong momentum.
Three stocks to buy, as recommended by Ankush Bajaj: Axis Bank: Buy at ₹ 1,045 | Target ₹ 1,134-1,140 | Stop loss ₹ 998 On the hourly chart, the Axis Bank stock has given a triangle breakout. Additionally, it forms a head and shoulders pattern. The ADX is at 35, indicating strong momentum.
JSW Energy: Buy at ₹ 548 | Target ₹ 580-590 | Stop loss ₹ 530 After a long consolidation between the 500–525 levels, the stock has given a breakout and also formed a reversal Head & Shoulders pattern with an upside target of 590, which can be achieved in the coming days. Additionally, the JSW Energy stock has broken out of a bullish pennant pattern, with rising volumes supporting the bullish momentum. Also read | Sebi’s settlement system under fire: Delays, high costs, and discretionary powers spark concern M&M: Buy at ₹ 2,791 | Target ₹ 3,098 | Stop loss ₹ 2,664 After a long consolidation between the 2,620–2,767 levels, the stock finally gave a breakout yesterday.
It has also broken the upper channel of a falling wedge pattern. Taking a long trade in this stock with a final target of 3,100 could be a good trade setup to initiate. Ankush Bajaj is a Sebi-registered research analyst.
His registration number is INH000010441. Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.
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