Nifty around 22,850, Sensex rises 1,131 pts; all sectors in the green

18 Mar 2025

Biggest Nifty gainers were ICICI Bank, M&M, Shriram Finance, L&T, Tata Motors, while losers included Bajaj Finserv, Bharti Airtel, Tech Mahindra. All the sectoral indices ended in the green with auto, capital goods, consumer durables, metal, power, realty, media index up 2-3 percent. BSE Midcap and smallcap indices rose more than 2 percent each.

At close, the Sensex was up 1,131.31 points or 1.53 percent at 75,301.26, and the Nifty was up 325.55 points or 1.45 percent at 22,834.30.

However, global factors such as the Federal Reserve meeting and geopolitical uncertainties may introduce intermittent volatility. A 'buy on dips' strategy remains prudent, with a focus on sectors/themes that align with the prevailing market trend.

The Nifty has broken out of a seven-session consolidation, resulting in a strong upward move. Additionally, the index has moved above the critical 21 EMA on the daily chart, signaling a bullish short-term trend.The RSI is also in a bullish crossover and rising, further supporting the positive momentum. In the short term, the index may move towards 23,100, while support is placed at 22,700 on the lower end.

The rally was driven by positive global cues and anticipation of the US Federal Reserve's interest rate decision, which is expected to maintain current rates.

In the near term, the USDINR spot rate has immediate support at 86.42 and resistance at 86.90. The technical outlook is becoming increasingly favorable for rupee bulls.

Buoyancy across global equities boosted the confidence of local investors which translated into value buying across the sectors. As markets were in a bearish mode over the past few weeks and valuations had become a bit attractive, investors seized opportunity in the beaten-down sectors.