NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Thursday, March 06, 2025
The Nifty closed at 22,544.70, gaining 207.40 points (+0.93%). The positive momentum may continue if the index holds above the key intraday support at 22,500.
During the session, Nifty opened on a strong note at 22,476.30 but briefly dipped to an intraday low of 22,245.80 in the morning. However, it gained momentum throughout the day, reaching a high of 22,556.40 before settling at 22,544.70. Except for the realty sector, all major indices ended in positive territory, with metal, pharma, FMCG, and media stocks leading the gains. Market breadth was strongly positive, with 2,179 stocks advancing, 620 declining, and 82 remaining unchanged. Among Nifty constituents, ASIANPAINT, Coal India, HINDALCO, and BPCL were the top gainers, while TECHM, TRENT, BEL, and Kotak Bank were the biggest losers.
From a technical perspective, while momentum indicators suggest a negative bias, the index managed to close above its short-term moving averages. The formation of a white candle on the daily chart, with a close near the day's high, signals underlying strength. Additionally, the long lower shadow of the candle suggests strong buying interest near the support zone. If Nifty sustains above 22,500, it may test the short-term resistance at 22,700. On the downside, the nearest significant support remains at 22,000.
Intraday Levels: Support: 22,500, 22,400, 22,300 Resistance: 22,600, 22,700-22,800 (15-Minute Charts)
Positional Trading Levels: Short-term Support: 22,000-21,200 Resistance: 22,700-23,500
Conclusion: The Nifty's strong recovery and close near the day's high indicate sustained buying interest, despite lingering negative momentum signals. If the index holds above 22,500, it may continue its upward move toward 22,700-22,800. However, failure to sustain above this level could lead to consolidation or a retest of lower supports at 22,400 and 22,300. Traders should monitor key levels closely, as a break above 22,700 could signal further upside, while a dip below 22,500 may weaken the bullish sentiment.
Bank Nifty Technical Outlook
In the previous session, the Bank Nifty closed at 48,627.70, gaining 137.75 points. While technical indicators still reflect a negative bias, the index managed to close above its short-term moving averages. It formed a black candle on the daily chart but ended higher than the previous day's close, indicating a mildly positive bias.
On the upside, 48,750 remains a key short-term resistance level. A sustained close above this level could signal a positive trend reversal, while failure to breach it may lead to a sideways consolidation. On the downside, the nearest intraday support is at 48,400.
Key Levels: Intraday Support: 48,400, 48,200, 48,000 Intraday Resistance: 48,650, 48,900, 49,150
Positional Support: 47,750–47,000 Positional Resistance: 48,750–50,000
Bank Nifty shows mixed signals, with a mild positive bias as the index remains above its short-term moving averages. However, overall technical indicators still suggest caution. A break above 48,750 could confirm further upside momentum, while failure to hold above 48,400 may lead to consolidation or a downside move. Traders should watch these levels closely to gauge the next trend direction.