Sensex, Nifty opening predictions on March 21: What to expect today

BSE, NSE today: Nifty has posted gains for four straight sessions this week, marking its longest winning streak in nearly seven weeks.

In Short

• IT stocks in focus due to US spending concerns
• Sensex and Nifty rose over 1% on Thursday
• Market expected to open cautiously after gains

Stock market is expected to open on a cautious note today after four consecutive days of gains. Investors will be watching information technology stocks closely, as concerns remain about discretionary spending in the United States.

On Thursday, the market saw strong gains, with the Sensex and Nifty rising over 1%, led by auto and IT stocks. The S&P BSE Sensex climbed 899.01 points to close at 76,348.06, while the NSE Nifty50 advanced 283.05 points to end at 23,190.65.

MARKET TREND

The Nifty has posted gains for four straight sessions this week, marking its longest winning streak in nearly seven weeks. Foreign portfolio investors (FPIs), who had been selling Indian stocks since late last year, have turned buyers in two of the last four sessions, as per provisional data.

The FTSE March semi-annual review will come into effect today, and according to IIFL, this could bring net inflows of $1.4 billion into Indian stocks. This may help maintain strong buying momentum in the market.

The GIFT Nifty futures were trading at 23,187.5 as of 8:08 a.m. IST, suggesting that the Nifty 50 may open close to Thursday’s closing level of 23,190.65. The flat start indicates that investors may be taking a cautious approach after the recent rally.

MARKET OUTLOOK

Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities, said, "Nifty has broken through a major resistance, backed by strong follow-through buying and a V-shaped rebound, signalling persistent demand on every dip. The index has now recorded four consecutive bullish closes, further strengthened by its 20-day EMA support."

He added that the 22,500-23,000 range remains a solid base, with strong put writing reinforcing support. On the upside, 23,400-23,500 will be the next resistance level. If Nifty sustains above 23,000, short covering and fresh buying could push prices higher.

"As long as Nifty holds above 22,900, a Buy on Dips strategy remains the most favourable approach, while 23,400 is a key breakout level for the next leg of the rally," Dhameja said.

KEY SECTORS TO WATCH

• Information Technology: IT stocks will be in focus as global trends impact investor sentiment.
• Auto and Banking: These sectors have supported the rally and will be watched for continued strength.
• Foreign Investment: FPI inflows will be a key factor in determining market direction.