Short-Term Mkt Formation Remains Positive

Mumbai: The benchmark indices continued their positive momentum for the sixth day in a row, with BSE Sensex up by 1,079 points. Among sectors, almost all major sectoral indices traded in positive territory, but the Defence and PSU Bank indices outperformed, rallying over three per cent. Technically, after a gap-up open, the market maintained positive momentum throughout the day. A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate further upward movement from the current levels. “We believe that the short-term market formation is still on the positive side, but due to temporary overbought conditions, we might see some profit booking at higher levels,” says Shrikant Chouhan, head (equity research), Kotak Securities.

For day traders, the 78,500-78,700 range would be the key resistance areas, while 77,500-77,200 could act as significant support levels for trend-following traders. However, if the market falls below 77,200, traders may prefer to exit their long positions.

Also, the moderating domestic inflation and hopes of further cuts in interest rates have temporarily offset the concerns of tariff-related global uncertainty. Rajesh Sinha, research analyst at Bonanza, said that “today, the Indian stock markets witnessed a significant surge on March 24, marking the sixth consecutive day of gains.”

The rally was broad-based, with most sectoral indices closing in the green, except for consumer durables and metals. The best performing sector was Nifty Energy, which rose by 1.44 per cent, while Nifty Metal was the worst-performing, declining by 0.55 per cent. Gain in Nifty-50 and Sensex can be attributed to several factors including, renewed FIIs flows and positive global cues led by the indications that upcoming tariffs in the US might be less severe than anticipated. Further, growing speculation that the RBI will cut interest rates in its April 2025 policy review.