Stock market: How Nifty50 likely to perform in near term? Key levels to watch this week

Indian stock market: Both Indian indices continues with its downward trend by opening on a negative note on Monday, March 10. The Nifty 50 index began trading at 22,521.85, slipping by 30.65 points or 0.14%, while the BSE Sensex opened at 74,474.98, recording a modest rise of 142.40 points or 0.19%.

However, after opening on a lower note both indexes made a U-turn edging marginally higher. At 9:45 AM, the BSE Sensex rose by 342 points (0.46%) to reach 74,674, while the Nifty50 climbed 102 points (0.45%) to trade at 22,654.

Last week on Friday, the Nifty index closed at 22,552.50, recording a 1.93 per cent increase compared to the previous week’s close.

“This week, a small-bodied bullish candle with a slight lower wick has formed, reinforcing buying interest at lower levels and indicating a potential continuation of the uptrend if the index surpasses immediate resistance levels. While this suggests a pause in the bearish trend, a sustained breakout and close above the 22,800 mark could confirm a reversal, likely attracting fresh buying interest and paving the way for further upside momentum,” brokerage firm Choice Broking said in a note.

Nifty50 technical levels to watch out this week

According to the brokerage firm, Nifty is trading below its short-term (20-day) and medium-term (50-day), on the weekly timeframe Exponential Moving Averages (EMAs).

However, the recent reversal from lower levels suggests that the index is attempting to reclaim these key moving averages. A successful breakout above these levels would further confirm a bullish outlook. The Relative Strength Index (RSI) stands at 39.58, indicating a rebound from lower levels.

“In terms of levels, Nifty has immediate support at 22,400 and 22,300, which could provide strong buying opportunities for traders at lower levels. Resistance is expected at 22,600 and 22,800, with the latter being a key hurdle. A sustained breakout above 23,000 could trigger a bullish trend, targeting 23,500 and 23,800 in the coming weeks,” it said.

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