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Stock market recap: The Indian stock market saw strong buying interest on Tuesday, 24 March, with the benchmarks — Sensex and Nifty 50 — rising about 2% each.

BSE barometer Sensex jumped 1,372 points, or 1.89%, to close at 74,068, while the Nifty 50 rose by 440 points, or 1.78%, to settle at 22,912. The BSE 150 Midcap index and the BSE 250 Smallcap index added 2.5% and 2.2%, respectively.

Investors earned ₹8 trillion in a single session as the cumulative market capitalization of BSE-listed firms rose to nearly ₹423 trillion from ₹415 trillion in the previous session.

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Nifty 50 performance on 24 March

Nifty 50 opened on a positive note at 22,878.45 and maintained strength through the session, reflecting sustained buying interest at lower levels. After touching an intraday low of 22,624.20, the index witnessed a steady recovery and rallied to an intraday high of 23,057.30 before closing near the day’s high at 22,912.40.

The formation of a bullish candle with a higher-high and higher-low price structure suggests short-term demand emerging after recent declines. However, the index continues to trade below its key moving averages, indicating that the broader trend remains weak. This recovery appears largely sentiment-driven, driven by easing geopolitical concerns rather than strong underlying market strength.

From a technical standpoint, the RSI is currently near 34, indicating that the index remains in the oversold territory but is showing signs of a mild recovery. The RSI’s upward tick suggests a potential short-term bounce, although it has yet to confirm a strong reversal. Meanwhile, the MACD remains in negative territory with a bearish crossover intact, reflecting continued downward momentum despite the recent pullback. The histogram also indicates persistent selling pressure, although the pace of decline appears to be moderating. This setup suggests that while a near-term relief rally may continue, the broader momentum still favours the bears unless key resistance levels are reclaimed.

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

On the price front, immediate support for Nifty 50 is placed near 22,600–22,400 , with a breakdown below this level potentially leading to further downside. On the upside, resistance is seen at around 23,200, followed by a stronger hurdle near 24,000, where key moving averages are clustered. Looking ahead, the index is expected to remain volatile with a slight positive bias in the near term, supported by short-covering and improving sentiment. However, unless it reclaims key moving averages, rallies may face selling pressure. Macro cues, including FPI flows and global stability, will remain critical for sustained upside.

Nifty Bank's performance

Nifty Bank opened on a gap-up note and maintained positive momentum throughout the session, reflecting sustained buying interest. The index formed a bullish candle on the daily chart, supported by a higher-high and higher-low price structure, indicating short-term strength. It opened at 52,384.80 and, after touching an intraday low of 51,827.50, witnessed a sharp recovery. The index rallied to an intraday high of 52,949.15 and eventually closed near the day’s high at 52,605.65, registering a gain of 2.27%.

This price action suggests a rebound following a steep correction. However, the index continues to trade below its key moving averages, highlighting an underlying weak broader trend. The current up move appears largely driven by short covering and improving sentiment rather than strong institutional accumulation.

From a technical perspective, the RSI is currently near 31, indicating oversold conditions with early signs of recovery. The RSI’s gradual uptick suggests a potential short-term bounce, although it remains below the neutral zone. Meanwhile, the MACD remains in negative territory with a bearish crossover intact, highlighting persistent downside momentum. The histogram continues to show selling pressure, though the pace appears to be moderating. This indicates that while a relief rally may continue in the near term, the overall trend still favors bears unless stronger confirmation signals emerge.

On the price front, immediate support is placed near 51,300–51,000, with a breakdown below this range potentially leading to further downside pressure. On the upside, resistance is seen around 53,500, followed by a stronger hurdle near 55,000, where key moving averages are positioned. Going forward, Nifty Bank may witness continued volatility with a slight positive bias in the near term, supported by short covering and improving global sentiment. However, unless the index reclaims its key moving averages, rallies are likely to face selling pressure, with FPI flows and macro developments remaining key triggers.

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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