Sensex, Nifty outlook for Friday by experts: Will two-day stock market rally continue?
Nifty outlook: The recent pullback has lifted Nifty above its 10-day SMA (23,240) for the first time since the drawdown triggered by West Asia war tensions.
- Mar 25, 2026,
- Updated Mar 25, 2026 5:53 PM IST
Benchmark stock indices Nifty and Sensex on Wednesday climbed for the second straight session, breaching immediate resistance levels. The indices saw a gap-up start and they closed with 1.6-1.7 per cent gains despite some late selling. The trend stays strong and more upside is likely, suggest technical analysts.
For the day, Sensex settled at 75,273.45, up 1,205 points or 1.63 per cent. Nifty ended the day at 23,306.45, up 394.05 points or 1.72 per cent.
Nifty outlook Vinay Rajani, Senior Technical Research Analyst at HDFC Securities said the recent pullback has lifted Nifty above its 10-day SMA (23,240) for the first time since the drawdown triggered by West Asia war tensions. The daily RSI continued to show positive divergence, reinforcing the strength of this recovery, he said adding that the key support for the index has shifted higher to 23,060, while resistance looms in the 23,378–23,618 band.
"Nifty witnessed another day of meaningful recovery as the Middle East conflict eased. On the higher end, it found initial resistance at the previous congestion zone. The RSI on the daily chart is in a bullish crossover with a positive divergence. In the short term, the trend may remain positive as long as it stays above 23,000, where immediate crucial support is placed," said Rupak De, Senior Technical Analyst at LKP Securities.
Dhupesh Dhameja of SAMCO Securities said momentum indicators have improved from oversold territory, with RSI reclaiming above 40, reflecting improving sentiment after prolonged weakness.
"On the hourly chart, the index has moved above its short-term averages, supporting near-term strength, though the broader trend remains cautious as the index still trades below the falling 10-DEMA on the daily chart," he said.
Sensex outlook Hitesh Tailor, Technical Research Analyst at Choice Equity Broking said the 30-pack index has continued to exhibit an improving price structure with formation of higher highs and higher lows, suggesting strengthening short-term momentum and a gradual recovery from the recent corrective phase.
"Key technical levels indicate that the support is placed in the 74,500–74,700 zone, which is expected to act as a demand area on declines, while resistance is seen around 75,800–76,000, where upside may face supply and profit-booking pressure," Tailor said.
The Choice Broking expert said the near-term outlook remains cautiously positive, with underlying strength intact, saying a sustained move above resistance is crucial for continuation of the uptrend, while any pullback towards the support is likely to attract buying interest.
What to watch?
Angel One in a note said traders must closely monitor developments in the West Asia, as they are likely to influence near-term market trends. Simultaneously, attention should be directed toward thematic stocks and sectoral movers, which may offer opportunities for outperformance in the current market environment, allowing participants to strategically navigate volatility while capitalizing on targeted growth segments, it said.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services said despite the rebound, foreign institutional investors remained aggressive sellers, highlighting that underlying global risk aversion has not fully subsided.
Going ahead, Khemka said the ongoing recovery is likely to remain fragile and contingent on further clarity around geopolitical developments.
"While easing crude prices and negotiation signals have provided near-term relief, any reversal in sentiment—particularly around energy infrastructure risks—could quickly weigh on markets. With markets closed on Thursday for Ram Navami, participants will closely track developments during the interim, with Friday’s session likely to reflect any fresh cues," Khemka said.
Benchmark stock indices Nifty and Sensex on Wednesday climbed for the second straight session, breaching immediate resistance levels. The indices saw a gap-up start and they closed with 1.6-1.7 per cent gains despite some late selling. The trend stays strong and more upside is likely, suggest technical analysts.
For the day, Sensex settled at 75,273.45, up 1,205 points or 1.63 per cent. Nifty ended the day at 23,306.45, up 394.05 points or 1.72 per cent.
Nifty outlook Vinay Rajani, Senior Technical Research Analyst at HDFC Securities said the recent pullback has lifted Nifty above its 10-day SMA (23,240) for the first time since the drawdown triggered by West Asia war tensions. The daily RSI continued to show positive divergence, reinforcing the strength of this recovery, he said adding that the key support for the index has shifted higher to 23,060, while resistance looms in the 23,378–23,618 band.
"Nifty witnessed another day of meaningful recovery as the Middle East conflict eased. On the higher end, it found initial resistance at the previous congestion zone. The RSI on the daily chart is in a bullish crossover with a positive divergence. In the short term, the trend may remain positive as long as it stays above 23,000, where immediate crucial support is placed," said Rupak De, Senior Technical Analyst at LKP Securities.
Dhupesh Dhameja of SAMCO Securities said momentum indicators have improved from oversold territory, with RSI reclaiming above 40, reflecting improving sentiment after prolonged weakness.
"On the hourly chart, the index has moved above its short-term averages, supporting near-term strength, though the broader trend remains cautious as the index still trades below the falling 10-DEMA on the daily chart," he said.
Sensex outlook Hitesh Tailor, Technical Research Analyst at Choice Equity Broking said the 30-pack index has continued to exhibit an improving price structure with formation of higher highs and higher lows, suggesting strengthening short-term momentum and a gradual recovery from the recent corrective phase.
"Key technical levels indicate that the support is placed in the 74,500–74,700 zone, which is expected to act as a demand area on declines, while resistance is seen around 75,800–76,000, where upside may face supply and profit-booking pressure," Tailor said.
The Choice Broking expert said the near-term outlook remains cautiously positive, with underlying strength intact, saying a sustained move above resistance is crucial for continuation of the uptrend, while any pullback towards the support is likely to attract buying interest.
What to watch?
Angel One in a note said traders must closely monitor developments in the West Asia, as they are likely to influence near-term market trends. Simultaneously, attention should be directed toward thematic stocks and sectoral movers, which may offer opportunities for outperformance in the current market environment, allowing participants to strategically navigate volatility while capitalizing on targeted growth segments, it said.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services said despite the rebound, foreign institutional investors remained aggressive sellers, highlighting that underlying global risk aversion has not fully subsided.
Going ahead, Khemka said the ongoing recovery is likely to remain fragile and contingent on further clarity around geopolitical developments.
"While easing crude prices and negotiation signals have provided near-term relief, any reversal in sentiment—particularly around energy infrastructure risks—could quickly weigh on markets. With markets closed on Thursday for Ram Navami, participants will closely track developments during the interim, with Friday’s session likely to reflect any fresh cues," Khemka said.