Indian stock market: How Nifty50 likely to perform in short-term? Key technical levels to watch this week

Indian stock market: Indian indices benchmark - Sensex and Nifty50 - snapped the losing streak to open on a higher note on Monday, March 17. At 9:25 am, the BSE Sensex increased by 374 points (0.51%) to reach 74,203, while the Nifty50 advanced 119 points (0.53%) to trade at 22,517.

The surge was led by banking, financial, and auto stocks which attributed to positive trends in Asian markets, following China's announcement of new initiatives to stimulate domestic consumption.

On Thursday last week, Nifty50 ended the previous trade session 3,880.15 points below its record high of 26,277.35.

On Friday, March 14, 2025, the Indian stock markets, including the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), were closed in observance of Holi.

“Nifty ended on a weak note, closing at 22,397.20, forming a Doji candle on the weekly chart after a strong bullish candle. This pattern, supported by the 100 EMA, indicates ongoing bullish strength but also suggests indecisiveness near key resistance levels," said brokerage firm Choice Broking in a note.

Key technical Nifty50 levels to watch out this week

The brokerage firm further added that Nifty has strong immediate support at 22,150, followed by 22,000 and a break below these levels could trigger further weakness, leading to increased selling pressure.

“A decisive close above 22,680 could confirm a breakout, potentially driving the index toward 23,050 and 23,150, where immediate resistance levels are placed,” it added.

The India VIX, a measure of market volatility, decreased by 3.01% to 13.28, signaling reduced uncertainty and a boost in investor confidence. This decline suggests that traders perceive the market as more stable. However, ongoing concerns persist due to subdued global cues and continuous selling by foreign institutional investors (FIIs), which continue to weigh on market sentiment.

“If Nifty sustains above 22,680, it could trigger a fresh rally, while failure to hold above 22,150 may invite further selling pressure. Traders should maintain a cautious approach with strict risk management amid ongoing global uncertainties,” the brokerage firm added.

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