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Trade Setup for March 17: Nifty sees a bounce from oversold levels, but 23,500 remains key hurdle for bullsThe broader trend of the Nifty remains weak and the market is not yet out of the woods. A crucial resistance is placed in the 23,500-23,600 zone, and the index could witness sell-on-rise opportunities near this hurdle, believe analysts.By Meghna Sen  March 16, 2026, 6:59:27 PM IST (Published)3 Min ReadThe Indian equity market staged a relief rally on Monday, snapping a three-day losing streak and offering some respite to bulls at the start of the trading week.

The benchmark Nifty 50 opened with a mild gap-down and initially extended its losses, slipping to an intraday low of 22,955.

Buying interest, however, emerged at lower levels, triggering a sharp rebound of more than 450 points from the day's low. As the session progressed, the index steadily recovered and eventually settled above the key 23,400 mark.

The Nifty closed 258 points higher at 23,409, supported by strong buying in the final hours of trade.

After a weak start, the market remained under pressure for much of the session before a wave of buying after 2 pm lifted the index sharply and pushed it close to the day’s highs.

Among index constituents, UltraTech Cement and Grasim Industries were the top gainers, helping drive the recovery. On the other hand, Bharat Electronics and Max Healthcare Institute ended the session among the top laggards.

From a sectoral perspective, the Nifty Auto and Nifty Financial Services indices outperformed the broader market and ended the day with notable gains.

In contrast, the Nifty Oil & Gas and Nifty Realty indices underperformed and finished the session in negative territory.

The broader markets also recovered from their intraday lows. However, the Nifty Midcap 100 and Nifty Smallcap 100 ultimately closed lower despite the late-session rebound.

Going forward, investors will closely track developments in West Asia, particularly around potential disruptions to energy and oil supplies.

Progress on the India-US trade agreement and the upcoming interest rate decision from the Federal Reserve will also remain key triggers for market direction.

Nagaraj Shetti of HDFC Securities said the broader trend of the Nifty remains weak and the market is not yet out of the woods.

He said that a crucial resistance is placed in the 23,500-23,600 zone, and the index could witness sell-on-rise opportunities near this hurdle, while immediate support is seen around 23,000.

According to Dhupesh Dhameja of SAMCO Securities, a breakout above 23,500 could trigger short covering towards the 23,800-24,000 range. However, a fall below 23,200 may drag the index towards the 22,900-22,600 zone.

Until a clear breakout emerges, volatility-driven range-bound trading between 23,200 and 23,500 is likely to dominate the near-term market structure, he added.

Nilesh Jain of Centrum Finverse expects markets to remain volatile but sees scope for a gradual recovery, with the Nifty potentially retracing towards 23,800.

He said momentum indicators and oscillators have entered extremely oversold territory, signalling the possibility of a pullback. However, the broader structure remains weak and any rebound may attract selling pressure.

Rupak De of LKP Securities also said that while the overall sentiment has not changed significantly, a near-term technical pullback cannot be ruled out.

He expects the index to potentially recover towards 23,800 or higher, while immediate support is placed at 23,200. A break below this level could lead to renewed weakness.

The banking benchmark Nifty Bank also rebounded after hitting an intraday low of 53,258.

Sudeep Shah of SBI Securities said the 54,900-55,000 zone will act as a key resistance for the index. A sustained move above 55,000 could extend the pullback towards 55,500, while the 54,000-53,900 range is expected to act as a crucial support zone.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsBSE SensexNifty 50share market todayTrade setup