On March 16, value purchasing surfaced from lower levels and markets reversed three-day losses, resulting in benchmark indices Sensex and Nifty closing in deep green.
The Nifty ended at 23,408.80, up 257.70 points, while the Sensex closed at 75,502.85, up 938.93 points or 1.26%. 2,772 shares fell, 1,410 shares increased, and 157 shares remained constant. Sensex reached an intraday high of 75,805, while Nifty reached a high of 23,502.
The day saw a 1.7% increase in auto stocks, which had dropped 10.6% the previous week to record their worst performance in six years. While the larger mid-caps and small-caps had declines of 0.3% and 0.5%, respectively, nine of the sixteen key sectors saw gains on the day.
On March 16, value buying was observed from lower levels as the Sensex increased 700 points from the day’s low and the Nifty recovered the psychologically significant 23,000-level. For the fourth straight session, stocks in the metal, auto, banking, consumer durables, and FMCG sectors led the recovery in markets that were headed for a decline.
The India VIX, a volatility indicator, fell by almost 5% to trade below 22, reflecting Street’s anticipation of less selling pressure. However, analysts noted that VIX remaining above 18 indicates near-term volatility.
Monday’s session was marked by increased volatility as the Nifty traded in a range of 547 points, the highest in about six weeks.
After the Wall Street Journal revealed that the U.S. government is getting ready to declare that nations have decided to create a coalition to escort ships through the Strait of Hormuz, a crucial chokepoint that handles 20% of the world’s oil supply, sentiment brightened.
The Nifty monthly options chain shows a structural bearish shift as Put concentration moved down from 24,000 to the 22,000–23,000 zone and Call resistance solidified at 24,000–24,500. This indicates a significant long-unwinding and a widening trading range with an immediate downward bias toward the 23,000 support. We predict that the Nifty futures will trade between 22,000 and 24,000 in the upcoming week based on the data.
