Is there more upside in Nifty after an 800-point rally? Experts weigh in

The Indian stock market continued its strong upward momentum on March 20, with benchmark indices Sensex and Nifty extending their winning streak for the fourth straight session. Aided by broad-based buying and positive global cues, Nifty surged 283.05 points (1.24%) to close at 23,190.65, breaching the critical 23,000 mark, while the Sensex jumped 899.01 points (1.19%) to settle at 76,348.06.

What's Driving the Rally?

The recent uptrend has been driven by heavyweight stocks such as Reliance Industries and Bharti Airtel, along with support from IT shares. Positive global sentiment, particularly after the U.S. Federal Reserve reaffirmed its rate-cut projections for 2025, has also bolstered investor confidence.

Nifty has now gained nearly 4% (793.45 points) in just four sessions and has crossed its 50-day exponential moving average (EMA) for the first time since February 5, 2025.

What’s Next for Nifty?

Market experts suggest that the rally still has steam left, with technical indicators pointing towards further upside.

Ruchit Jain, VP & Head of Equity Technical Research at Motilal Oswal Financial Services, noted that after months of pressure due to a rising dollar index and foreign institutional investor (FII) selling, conditions have improved. The dollar index has eased from 110 to around 103, and FIIs have reduced their short positions, leading to a rebound.

He believes that the broad-based nature of the rally suggests Nifty could move towards its 200-day EMA, positioned between 23,400 and 23,600. Any dips could provide buying opportunities, indicating a “buy-on-dips” market.

Rupak De, Senior Technical Analyst at LKP Securities, echoed this view, citing a falling trendline breakout on the daily chart, which signals a bullish reversal.

The index has stayed above its 21-day EMA for three consecutive sessions, reinforcing the short-term uptrend. Additionally, the Relative Strength Index (RSI) has surpassed its previous swing high, further strengthening bullish sentiment.

According to him, Nifty could move towards 23,400 and beyond, while immediate support is placed at 23,000.

Midcaps & Smallcaps Join the Rally

The broader market also saw significant gains, with the Nifty Midcap 100 rising 0.64% and the Nifty Smallcap 100 climbing 0.7%. Market breadth remained strong, with 2,289 stocks advancing against 1,575 declines, and the BSE advance-decline ratio stood at 1.50, reflecting continued buying interest.

With strong technical indicators, cooling global pressures, and sustained buying across sectors, analysts believe Nifty’s momentum could continue. However, investors should watch for key resistance levels around 23,400–23,600 and stay mindful of market volatility.

Disclaimer: Investors should consult certified professionals before making investment decisions.