Can Nifty 50 bounce again to 23,000 ranges quickly? Technical specialists recommend key ranges to look at

Indian fairness markets ended decrease on Tuesday, March 4, although losses had been milder than in international and Asian friends. The decline marked the sixth straight month of weak point, following a 5.8 per cent drop in February, as escalating commerce tensions weighed on sentiment.

Regardless of makes an attempt to get well, Nifty 50 slipped 0.17 per cent to 22,082, extending its shedding streak to 10 classes, however held on to the essential 22,000 degree. The Sensex misplaced 0.13 per cent, closing at 72,962. IT and auto shares dragged markets decrease, whereas financials and PSUs offered restricted assist.

Commerce considerations deepened after Donald Trump reaffirmed 25 per cent tariffs on Canada and Mexico, efficient Tuesday, and doubled duties on Chinese language imports to twenty per cent. In response, China and Canada imposed retaliatory measures, heightening fears of a worldwide commerce conflict. Studies additionally recommend potential U.S. tariffs on agricultural imports, posing dangers for India.

With commerce tensions escalating, markets are prone to stay unstable. Buyers will monitor U.S. tariff insurance policies and international responses, whereas Indian indices want sustained shopping for to reverse the bearish development.

Technical Outlook: Key Ranges to Watch

The Nifty 50 prolonged its shedding streak to the fifth consecutive month in February, marking a development final seen in 1995-96. The benchmark index dropped 5.89 per cent in February, persevering with its downward trajectory since peaking at 26,277.35 on September 27, 2024. With Nifty nonetheless beneath all key shifting averages, market sentiment stays weak, however technical indicators recommend the potential for a short-term restoration.

No Instant Indicators of Restoration

Om Mehra, Technical Analyst, SAMCO Securities, mentioned Nifty stays beneath bearish strain, with no indicators of fast restoration. 

“The index is at the moment beneath all key shifting averages, indicating persistent weak point. Nevertheless, the day by day Relative Energy Index (RSI) has entered the oversold zone, suggesting a possible short-term reduction rally. A weekly hole between 22,720 and 22,668 stays unfilled, and a decisive shut above 22,800 can be required to set off a structural restoration,” Mehra added.

Market breadth stays weak, with an rising variety of shares buying and selling beneath their 200-day shifting common, highlighting sector-wide sluggishness. Till circumstances enhance, Nifty is predicted to consolidate and stay range-bound earlier than a significant pullback, opined Mehra.

Key technical ranges for March:

Assist ranges: 21,750, adopted by 21,281 (low from June 4, 2024).

Resistance ranges: 22,800, with a breakout above 23,100 probably triggering a bullish momentum shift.

Bearish Development Continues: Warning Suggested

Vinay Rajani, Senior Technical & By-product Analysis Analyst, HDFC Securities, mentioned the short-term development for Nifty stays bearish because the index is buying and selling beneath its crucial short-term shifting averages. 

“Warning is suggested till Nifty manages to shut above 22,500, which might sign the beginning of a restoration. On the draw back, fast assist is seen within the 22,000–20,050 vary, with further assist at 21,800 and 21,280,” as per Rajani.

Key ranges to watch:

Assist ranges: 22,000, 21,800, and 21,280.

Resistance ranges: 22,500 and 22,800

Extra Weak spot Forward for Nifty?

Rupak De, Senior Technical Analyst, LKP Securities, mentioned Nifty’s current breakdown from a consolidation sample has intensified its decline. The index has struggled to stage a significant bounce, remaining in a powerful bearish grip. “Close to-term assist is predicted round 21,800–22,000, and sustaining above 21,800 might result in a major restoration. Nevertheless, a failure to take care of this degree might set off one other spherical of sharp declines,” warned De.

Jigar S Patel, Senior Supervisor – Technical Analysis, Anand Rathi Shares and Inventory Brokers mentioned for the March collection, 22,100–21,800 will act as a cushion, whereas resistance lies within the 22,500–22,800 zone. 

“A bullish butterfly sample on the day by day chart suggests a possible reduction rally if Nifty closes above 22,250. Till a decisive breakout happens, market volatility is prone to persist,” as per Patel. He suggested merchants to stay cautious, searching for affirmation earlier than making aggressive trades. A sustained transfer above resistance might point out energy, whereas failure to carry assist might result in deeper corrections, he mentioned.

Disclaimer: The views and proposals made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to test with licensed specialists earlier than taking any funding selections.