Trade Setup March 17: Nifty likely to face immediate resistance in the 23,500–23,550 zone

Nifty 50 rebounded after three consecutive sessions of losses, closing higher on strong afternoon buying. Analysts expect the index to face immediate resistance near 23,500–23,550, while support is seen around 23,300–23,250 as markets prepare for the March 17 trading session.

Nifty Breaks Losing Streak With Late Rebound

Indian equity benchmarks ended higher on Monday after a strong post-lunch recovery, snapping a three-day losing streak.

The Nifty 50 closed nearly 0.9% higher above 23,340, while the BSE Sensex gained about 700 points to finish above 75,300, recovering nearly 1,500 points from the day’s low.

The rebound was supported by gains in heavyweights including HDFC Bank and Mahindra & Mahindra.

Resistance Levels for Nifty

According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the index is likely to face immediate resistance in the 23,500–23,550 zone.

If the benchmark manages to sustain above 23,550, the pullback rally could extend toward 23,700 in the near term.

On the downside, analysts identify 23,300–23,250 as key support levels, which could help stabilize the index during any fresh selling pressure.

Technical Indicators Signal Pullback

Market research from Bajaj Broking indicates that the index formed a bullish candlestick pattern with shadows on both sides, suggesting a rebound from oversold conditions after testing the psychological 23,000 level earlier in the session.

However, analysts caution that market volatility may remain elevated due to uncertain global cues and geopolitical developments.

Bank Nifty Outlook

The Nifty Bank index also staged a recovery after hitting an intraday low of 53,258.

Key levels identified by analysts include:

Resistance: 54,900–55,000

Breakout target: 55,500

Support: 54,000–53,900

A sustained move above 55,000 could extend the current pullback rally in banking stocks.

Oil Prices and Global Cues in Focus

Despite the rebound in equities, rising crude oil prices and geopolitical tensions remain major concerns for markets.

Global oil benchmarks traded higher:

West Texas Intermediate crude: around $100 per barrel

Brent Crude: above $105 per barrel

Higher energy prices and global uncertainty are expected to keep trader sentiment cautious in the near term.