Nifty 50 and Nifty Bank Prediction for tomorrow 24 March 2023: The benchmark indices for India ended the day on a shaky note today. The U.S. market’s downward swing following the FOMC decision was a major factor in today’s fall. Nearly everyone in the market was aware of Jerome Powell’s 25 basis point increase. But only a few anticipated a dovish comment. As a result, overnight, the Dow Jones, S&P, and Nasdaq cracked close to 2%.
Today’s weekly expiry of Nifty and Banknifty also fueled the overall weakness in the Indian equity market. The sharp bounce from the morning loss couldn’t help to get a strong close in Nifty 50 and Nifty Bank. Nifty 50 was down 0.44% and Nifty Bank was down 0.96% today. The weakness was also visible in the broader market, except in a few counters of FMCG, pharma, metal, and auto.
Nifty 50 and Nifty Bank Price Movement on 23 March 2023
Today, the opening price of the Nifty 50 was 17,097.40. During the day, the index made a low of 17,045.30 and it closed at 17,076.90, 75 points lower than its previous closing price, or a drop of 0.44%. On the other hand, Nifty Bank opened at 39,836.15 and made a low of 39,552.50 in the last half hour of the day. Nifty Bank’s closing price was 39,616.90, which was down 0.96% or 382.15 points from the previous day’s closing.
Although both indices showed a strong recovery in the first half of the session, they gave up their gains in the last hour of trading as the Dow future trimmed its gain from +200 to +50 points only. This led to a damaging closing in the Indian market, despite the strong closing of other Asian markets.
Nifty 50 Prediction for Tomorrow 24 March 2023
If we draw the 1-hour chart of Nifty 50, we can see that Nifty 50 reversed from its key supply zone at 17200. In the past, there were multiple supply zones on the hourly chart. Today’s closing price is not a good sign for tomorrow, at least as it closed below all its important moving averages.
As per the chart, the next area of immediate support will be between 17000 and 16980. If it breaks this area the next major support will be at 16900. This will be followed by final support for tomorrow at 16828.35 which was the recent low of Nifty 50.
If we consider the pivot of Nifty 50 for tomorrow, the resistances will be 17173, 17269, and 17333. But similarly, the supports of the Nifty 50 will be 17013, 16949, and 16852. For tomorrow, the pivot point of the Nifty 50 will be 17109.
If we mix the pivot and chart of the Nifty 50, we can conclude that the ongoing setup of the Nifty 50 is not a bullish sign for tomorrow. To regain Nifty’s strength for a rally, it has to maintain bullish price action above 17100–17110. Unless and until Nifty sustains above this key area, Nifty 50 will try to drift down toward 17000 and 16950.
Nifty Bank Prediction for Tomorrow 24 March 2023
The Nifty Bank stock has encountered resistance at 40200, which has been a supply area in the past also. Unfortunately, today’s closing price does not bode well for tomorrow, as it closed below important exponential moving averages (EMA).
According to the chart, the immediate support for Nifty Bank will be between 39350 and 39100. If this area is breached, the next major support level will be at 38900, followed by a final support level at 38613.15, which was the index’s recent low.
Looking at the Nifty Bank’s pivot for tomorrow, we can see that the resistance levels will be at 40028, 40439, and 40677. On the other hand, the support levels will be at 39379, 39141, and 38730. The pivot for tomorrow’s trading will be at 39790.
By combining the pivot and chart analysis, it appears that the current setup of Nifty Bank is not indicating a bullish trend for tomorrow. To see a rally, the Nifty Bank will need to maintain bullish price action above the key level of 39800. Without this, the index may continue to drift down towards 39350 and 39100. The next very strong demand area of the Bankinifty spot will be 38900.
Global Market Outlook for Tomorrow 24 March 2023
At the time of writing this article, one of the popular indexes of the U.S., the Dow Jones is just 30 points up. It increased by more than 450 points one at a time. It means it has given up all its intraday gains. Nevertheless, the Nasdaq 100 is still up by 0.5% on prospects of Fed monetary policy pause in the near future. But the S&P 500 is trading flat with an addition of a few points.
The European markets had a mixed performance today. While the FTSE 100 index fell by 0.89%, the DAX and CAC indices closed without significant changes.
Conclusion
The performance of the Indian equity market will largely depend on how the U.S. market closes tonight. If the U.S. market doesn’t close positively, then Asian markets, including India, are likely to react negatively tomorrow. Since tomorrow is the last trading day of the week, we can expect a significant amount of volatility. There is a high possibility of continued selling pressure tomorrow also in the Indian benchmark indices Nifty and Sensex. Traders should pay attention to the key levels of Nifty and Banknifty spots mentioned earlier and also consider the overall tone of the global market.
