StockEdge Morning Market Report | Tuesday, 17 March 2026

Nifty 50 closed at 23,409 — up 258 points (+1.11%). The recovery was a late-session affair — the index spent most of the day oscillating in the red before a sharp fag-end buying burst drove it into the green in the final hour.
Auto and Banks led the recovery — both sectors had been the worst hit during last week's carnage. Broader markets, however, did not participate — Nifty MidCap and SmallCap ended 0.43% and 0.65% lower respectively, a clear sign that the bounce was index-heavy and not broad-based.

FII continued to sell 9365 crs and they added to their index net short futures positions – which now stands approx. 2,48,000 contracts.
India VIX remained elevated to 21 levels.
The week's key macro event is the US Federal Reserve policy decision — markets are watching Powell's tone closely. The rupee hit ₹92.56 — a record low.
GIFT Nifty is currently trading 110 points up, hinting a positive start.

Nifty 50
Yesterday's recovery from that zone sets the stage for a possible pullback rally. However, one session of fag-end buying after three weeks of sustained selling does not change the trend. The indicators have been deeply oversold – and hence a pullback is normal counter to the main trend – down. On the upside, 23,700 is the first meaningful resistance to watch. 23100 and 22900 remains as support levels.
The index could see an extended pullback session to test the resistance levels of 23700 / 23850

Nifty Bank

Bank Nifty closed at 54,413 — up 1.22% — participating in the recovery after being the most damaged sector over the past two weeks. The key important support level was tested 53700 and had a bounce from there. The bounce is encouraging but the index has a long road back — it remains well below all key averages. A further relief pullback can be expected giving the deeply oversold indicator setups and the bounce from important support zone. 54700 stands as an immediate resistance.

Conclusion

Monday's bounce was welcome but the manner of it — with broader markets still in the red — tells you this is not a conviction-led recovery. Until The trend structure changes — until higher highs and higher lows are confirmed — every bounce is still a relief rally within a downtrend. Do not chase this move, unless you are a very short term trader.

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