Sensex Prediction for 10 March: Long bullish candle on the weekly charts

The Sensex and Nifty indices showed signs of strength in recent sessions but ended flat on Friday, reflecting market volatility driven by foreign fund outflows and global trade uncertainties. Despite the losses, the indices had a strong week with the Nifty rising 1.93% and the Sensex climbing 1,130 points.

The Sensex closed at 74,300, and the Nifty ended above the 22,500 mark. Although both indices faced a dip below crucial levels during the week (22,000 for Nifty and 72,800 for Sensex), they made a sharp recovery, forming a reversal pattern on both daily and weekly charts—indicating the possibility of a continued uptrend.

Market Outlook for 10 March: Market expert Amol Athawale believes that the current technical formations support the uptrend, with a long bullish candle visible on the weekly charts and an intraday uptrend continuation pattern. He suggests that a breakout above 74,600 could trigger a rally, while a breakdown below 74,000 may lead to a pullback toward 73,800.

Support and Resistance Levels for Sensex: According to Anand Rathi’s Jigar Patel, the key resistance for Monday, 10 March, is at 74,600, while support stands at 74,000. Traders should wait for confirmation at these levels before taking positions. Price action around these levels will be critical in determining the market's direction.

For positional traders, Athawale identified 74,000 and 73,700 as key support zones. If the market remains above these levels, it could bounce back to the 20-day SMA, potentially reaching 75,200. A further rise could lift the indices toward 75,700. However, if the market drops below 73,700, the sentiment may shift, and traders may opt to exit long positions.

Market Sentiment and Recovery: The continuation of the rally depends on earnings recovery and broader market sentiment. Large-cap stocks are better positioned, but the broader market may consolidate unless earnings growth accelerates. Market sentiment remains fragile, and a sustained rally will require stronger fundamental support.

Key Takeaways:

Watch for price action around 74,000-74,600 levels.

Breakout above 74,600 may trigger a rally, while a breakdown below 74,000 could lead to a pullback.

Market sentiment hinges on earnings recovery and broader market conditions.