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Stock market recap: Indian stock market benchmark indices Sensex and Nifty ended 0.7% higher on Tuesday, 17 March, following gains in global peers. Meanwhile, investors remained on edge amid lingering concerns over the ongoing US-Iran conflict in the Middle East, a sharp rise in crude oil prices, and continued strength in the US dollar, all of which have weighed on risk appetite.

Sensex ended 568 points or 0.75% higher at 76,071 while Nifty rose 172 points or 0.74% to settle at 23,581. Among broader markets, Nifty Midcap 100 rose 1% while Nifty Smallcap 100 advanced 0.65%

Among sectors, Nifty Auto and Nifty Metal were leading while Nifty IT and Nifty FMCG lost the most.

Two stock recommendations by MarketSmith India:

Buy: Tata Power Co. Ltd (current price: ₹400)

Buy: Data Patterns (India) Ltd (current price: ₹3,300)

Nifty 50 performance on 17 March

Indian equities ended on a firm footing on 17 March, with Nifty 50 advancing 0.74% to close at 23,581.15, supported by broad-based buying across cyclicals and financials. The index traded in the range of 23,346–23,656, witnessing a steady upward bias through the latter half of the session, indicating improving risk appetite. Market breadth remained positive, with advances outpacing declines (1,934 vs. 1,299), reflecting broader participation beyond index heavyweights.

Sector-wise, Metals (+2.8%), Auto (+2.1%), and Realty (+1.8%) led the gains, while Financials also contributed meaningfully. In contrast, IT (-0.97%) and FMCG (0.75%) lagged, suggesting mild sectoral rotation. The sustained strength in domestic-facing sectors points to continued confidence in economic momentum, while global cues remained largely supportive.

Nifty 50’s recent price action reflects a corrective phase within a broader medium-term structure, with the index witnessing a sharp decline followed by a modest pullback. From a momentum perspective, the RSI is trending in the lower range near the mid-30s, indicating weak strength and remaining below its signal line, suggesting a continuation of subdued momentum despite the recent bounce. Meanwhile, the MACD remains in negative territory with a widening gap below the signal line, highlighting persistent bearish momentum. Although the histogram shows early signs of contraction, it suggests that the pace of decline may be moderating.

According to O’Neil’s methodology of market direction, the Indian equity market has transitioned from a " Rally Attempt " to a " Downtrend,” indicating an early stage of potential trend stabilization following a period of sustained weakness.

Nifty continues to experience elevated volatility, reflecting fragile market sentiment and persistent near-term uncertainty. During the session, the index briefly slipped below 23,000 before staging a sharp rebound, indicating buying interest at lower levels. However, a sustained breakdown below 23,000–22,900 would significantly weaken the prevailing technical structure and may trigger an accelerated downside move toward 22,000 in the near term. Such a development would point to continued distribution in the market and reinforce the current negative bias in the broader trend. On the upside, 24,300–24,600 is expected to act as an immediate hurdle for the index.

Nifty Bank's performance

Nifty Bank opened on a positive note and witnessed a mild recovery after recent sharp declines, indicating a technical pullback from lower levels. The index opened at 54,649.10, and moved higher to an intraday high of 54,996.00, while the low was recorded at 54,113.15. Finally, it closed at 54,876.00, gaining 0.85%. After a steep correction in prior sessions, the current price action reflects short-covering and selective buying at lower levels. However, the index continues to trade below its key short-term moving averages, indicating that the broader trend remains weak despite this bounce. Sustained buying above immediate resistance will be crucial for further recovery.

From a momentum perspective, the RSI (14) is currently at 31.76, indicating that the index is hovering near the oversold zone, suggesting a near-term pullback or consolidation. Meanwhile, the MACD remains in negative territory with a widening gap between the MACD and signal line, reflecting persistent bearish momentum. Although the histogram is showing early signs of contraction, a confirmed bullish crossover is still awaited. This combination indicates that while downside momentum is slowing, the overall trend remains weak and requires confirmation of strength before signaling a reversal.

Technically, immediate support for the Nifty Bank index is placed near 54,000–53,700. On the upside, resistance is seen near 55,800–56,200, followed by a critical hurdle at 57,500, close to the 200-DMA. Given the prevailing downtrend and global uncertainty, including elevated crude prices and risk-off sentiment, the index may witness range-bound movement with a negative bias. Any pullback towards resistance is likely to face selling pressure unless supported by strong institutional buying and improving global cues.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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