Nifty makes higher high after 5 weeks; Sensex to gain strength above 74,550

Stock market outlook for the week March 17 - 21, 2025: Here are the key support and resistance levels to watch out for on the BSE Sensex and NSE Nifty this week.

Even as the benchmark equity indices ended on a negative note last week, there seemed to be a reason to be hopeful as the index made higher highs and higher lows on the weekly scale for the first time after 5 trading weeks.  The Bombay Stock Exchange (BSE) benchmark, the Sensex swung in a range of 1,143 points - the index from a high of 74,741, slipped to a low of 73,598, before ending the week at 73,829 - 0.7 per cent or 504 points.  The National Stock Exchange (NSE) Nifty 50 index hit a higher weekly high at 22,677, and a higher low at 22,315 - thereby reversing its 5-week lower-high, lower-low trend. The Nifty eventually settled with a loss of 0.7 per cent or 156 points at 22,397.  Among the Nifty 50 pack, IndusInd Bank down 28 per cent was the major loser last week in the backdrop of the accounting discrepancies news flow. Wipro and Infosys were the other major losers, down 7.3 per cent and 6.3 per cent, respectively. That apart, Tech Mahindra, Hero MotoCorp, ONGC, Mahindra & Mahindra, TCS and Axis Bank shed around 3 per cent each.  On the positive front, Sun Pharma surged over 4.5 per cent. ICICI Bank, Kotak Mahindra Bank, ITC and Power Grid Corporation gained 2 - 3 per cent each. 

Technical Outlook for the week ahead:

Sensex Outlook

  Last close: 73,829  Support: 73,100; 72,900; 72,700  Resistance: 74,550; 75,335; 76,000  As explained last week, the BSE Sensex is expected to enter a phase of consolidation in the broad range of 72,000 - 76,300 in the near-term. In the week ahead, the BSE Sensex may gyrate in the range of 73,100 - 74,550; with sustained trade above 74,550, can potentially trigger a rally towards 76,300, with interim resistance likely at 75,335 and 76,000 levels.  On the flip side, break and sustained trade below 73,100, can trigger a slide towards 72,000-mark. Intermediate  support for the BSE benchmark can be anticipated at 72,900 and 72,700 levels.   

Nifty Outlook

  Last close: 22,397  Support: 22,100; 21,950  Resistance: 22,587; 22,662; 22,815  The Nifty has thus far respected the 100-WMA (Weekly Moving Average) support, which stands at 21,950 levels. Given the oversold levels, the near-term bias for the Nifty can be considered as cautiously optimistic as long as the 100-WMA support is held. Near support for the index now exists at 22,100 levels.  On the upside, the Nifty needs to break and sustain above the 22,662 resistance for a likely pullback rally to emerge. Near resistance for the index is seen at 22,587. Break and sustained trade above these short-term hurdles, can open the doors for a likely up move towards 23,050 levels, with some resistance likely around 22,815 levels.