Trade Setup for March 21: The Nifty’s trend remains strongly bullish

The Nifty 50 has surged 600 points over four consecutive sessions, now standing at a crucial long-term resistance level of 23,200. With strong bullish momentum, traders are eyeing the possibility of an upside breakout.

Market Recap: Bulls Dominate the Street

After the Federal Open Market Committee (FOMC) maintained a dovish stance, global markets rallied, providing a strong setup for Indian equities. The Nifty opened with a gap-up on Thursday, comfortably crossing the 23,000 mark. Despite some initial hesitation, the index sustained its upward movement, closing at 23,191—its highest level since February 13.

The Sensex mirrored this bullish trend, soaring 1,131 points to settle at 75,301. Midcap and smallcap indices extended their winning streaks, with the Nifty Midcap 100 rising 0.64% and the Nifty Smallcap 100 gaining 0.7%. All sectoral indices closed in the green, rising up to 2%.

FIIs Return as Rupee Extends Gains

Foreign Institutional Investors (FIIs) turned net buyers after a prolonged selloff, infusing ₹694 crore into Indian equities on Thursday. Meanwhile, the Indian rupee marked its seventh consecutive session of gains, driven by a weaker dollar following the Fed’s policy signals.

Key Levels to Watch

Technical analysts suggest that if Nifty decisively breaches the 23,200 resistance, the next target would be 23,400-23,800. On the downside, immediate support is seen at 23,070 and 23,000.

Nagaraj Shetti (HDFC Securities): The Nifty’s trend remains strongly positive, and a breakout above 23,200 could push it toward 23,800 in the near term.

Ajit Mishra (Religare Broking): With Nifty surpassing 23,100 and the Bank Nifty reclaiming its long-term moving average, the next milestone is 23,400.

Rupak De (LKP Securities): The overall outlook remains bullish, with a potential move toward 23,400 and beyond.

Stocks to Watch on March 21

Manappuram Finance: To issue shares worth ₹4,385 crore to Bain Capital at ₹236 per share via preferential allotment.

Bajaj Finance: Rajeev Jain appointed as Vice Chairman for three years, effective April 1, 2025.

Hindalco: Plans ₹45,000 crore investment in next-gen precision-engineered products.

JSW Energy: To raise up to ₹800 crore via non-convertible debentures (NCDs) in two tranches.

Zomato: Ministry of Corporate Affairs approves company’s name change to ‘Eternal.’

Ashoka Buildcon: Reappoints Satish Parakh as Managing Director for three years from April 1, 2025.

CDSL: Subsidiary Centrico Insurance Repository partners with LIC for insurance repository services.

Lloyds Metals: Receives environmental clearance for a 1.2 MTPA wire rod project and a 4.0 MTPA pellet plant in Maharashtra.

Final Takeaway

As Nifty approaches a critical resistance level, traders should watch for a breakout above 23,200, which could trigger another strong rally. With FIIs turning buyers and a supportive global market backdrop, the bullish momentum may continue, but traders should also keep an eye on key support levels for any potential pullbacks.

Disclaimer: Investors are advised to consult certified experts before making any investment decisions.