Market Outlook for 27 March 2024

Post the extended weekend, Nifty started trading on a negative note and it traded within a narrow range throughout the day. The index ended the day just above 22000 mark with a loss of about half a percent.

Nifty Today:

It was a day of consolidation for the indices as Nifty traded within a narrow range throughout the day. However, there was no lack of stock specific action as the midcap index outperformed the benchmark to post gains of about a percent. Nifty has formed a range on short term charts where swing low of 21880 on the hourly charts would be seen as an important support while the 50 percent retracement at 22120 and 61.8 percent retracement at 22215 are seen as hurdles. The index needs a breakout beyond these boundaries for any directional move and until then, we could see some sideways movement.

On the Bank Nifty front, 47000 is seen as the immediate resistance and if we see a breakout above this, then the banking index could take the lead for the positive momentum. The RSI oscillator which indicates the momentum in the stock has not yet given a positive crossover post the recent correction, but it has crossed on the positive side on the midcap index charts. Thus, a stock specific positivity could be seen till the supports on the benchmark are intact and hence, traders should look for such opportunities.

                                   Nifty trades within a range while buying interest seen in midcaps 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: