Nifty Faces Range-Bound Phase,brace for volatility till Mid ApriNifty ended the week at 22,397, marking a decline of about 150 points from the previous week's close. The index reached a high of 22,676 and a low of 22,314, trading in a narrow range of just 360 points. This suggests that next week, Nifty could experience a wider range, with potential moves between 22,850 and 21,950 .
Despite the weakness seen on both the monthly and weekly charts, Nifty remains range-bound as long as the critical support level of 21,950 holds. However, with the end of March approaching, many investors will likely start booking losses to offset any gains they’ve made this year. This could trigger another round of selling pressure in the market. As a result, we may not see a meaningful recovery until mid-April, meaning we could face one more month of market volatility and pessimism.
It's crucial to keep cash ready to invest in fundamentally strong stocks during this period of market uncertainty. On the global front, the S&P 500 closed the week at 5,521, slipping below its 50-week exponential moving average (50WEMA). It seems likely that the index will test the 100-week exponential moving average (100WEMA) at around 5,240–5,250, which is about 4% below its current level. If this happens, we could see additional pressure across global markets, including India.
In summary, brace yourself for another month of market negativity before any potential relief arrives. Stay cautious and focus on high-quality stocks for the long term.
