Sensex, Nifty outlook for Monday: Will market recover in 3-day trading week?
Market outlook: Momentum indicators remain weak, with daily RSI sustaining below 40, reflecting bearish continuation gaining strength rather than a reversal.
- Mar 27, 2026,
- Updated Mar 27, 2026 6:18 PM IST
Benchmark indices Sensex and Nifty slapped a two-day winning run to settle below key psychological levels. The NSE barometer Nifty fell 486.85 points or 2.09 per cent to 22,819.60. The BSE benchmark Sensex declined 1,690.23 points or 2.25 per cent to 73,583.22. it was the fifth consecutive weekly decline, at 1.27 per cent. Analysts said its a sell-on-rise market. Any rebound, they said, may face selling pressure.
The coming week will be a truncated one, with market holiday on Tuesday on account of Shri Mahavir Jayanti and Friday on account of Good Friday.
Nifty outlook On the weekly chart, Nifty has formed a long-legged Doji candlestick with nearly identical open and close levels, hinting at potential trend reversal, said Vinay Rajani, Senior Technical Research Analyst at HDFC Securities.
"Any confirmation requires a breakout above this candle's high. The recent swing high of 23,465 now acts as a key resistance; a move above it could trigger short covering. On the downside, the swing low at 22,471 offers near-term support," Rajani said.
On the hourly chart, the index continues to trade below its falling 10- and 20-EMA, with a clear lower-high structure, highlighting persistent supply. Momentum indicators remain weak, with daily RSI sustaining below 40, reflecting bearish continuation gaining strength rather than a reversal. Additionally, India VIX holding above 25 level signals elevated volatility and supports the negative undertone, said Dhupesh Dhameja of SAMCO Securities.
"From a broader perspective, the weekly chart indicates the index has slipped below its intermediate support zone, suggesting the broader structure remains fragile and rallies are likely to be sold into," Dhameja said.
De of LKP Securities said a sell-on-rise approach may remain suitable in the near term. Technically, any rebound towards 23,500 could face selling pressure, as this level is likely to act as an immediate resistance, it said.
"On the downside, a break below 22,800 may lead to further weakness in the market," De said.
Ajit Mishra – SVP, Research at Religare Broking said Nifty continues to hover near crucial support levels, indicating sustained pressure despite entering oversold territory.
"Immediate support is placed around 22,500, and a decisive break below this level could trigger further downside towards 22,000. On the upside, 23,000 is likely to act as an immediate hurdle, followed by a stronger resistance near the 23,500 zone in case of any recovery," Mishra.
Sensex outlook Aakash Shah, Research Analyst at Choice Equity said the index formed a bearish Marubozu candlestick pattern, with the intraday high nearly equal to the opening level and the intraday low almost equal to the closing level.
"From a technical standpoint, the Sensex is expected to find immediate support in the 73,000–73,100 range, which may act as a key demand zone. On the upside, resistance is placed around the 74,000–74,100 levels. A sustained move above this resistance zone would be necessary to trigger any meaningful positive momentum in the upcoming sessions," Shah said.
Benchmark indices Sensex and Nifty slapped a two-day winning run to settle below key psychological levels. The NSE barometer Nifty fell 486.85 points or 2.09 per cent to 22,819.60. The BSE benchmark Sensex declined 1,690.23 points or 2.25 per cent to 73,583.22. it was the fifth consecutive weekly decline, at 1.27 per cent. Analysts said its a sell-on-rise market. Any rebound, they said, may face selling pressure.
The coming week will be a truncated one, with market holiday on Tuesday on account of Shri Mahavir Jayanti and Friday on account of Good Friday.
Nifty outlook On the weekly chart, Nifty has formed a long-legged Doji candlestick with nearly identical open and close levels, hinting at potential trend reversal, said Vinay Rajani, Senior Technical Research Analyst at HDFC Securities.
"Any confirmation requires a breakout above this candle's high. The recent swing high of 23,465 now acts as a key resistance; a move above it could trigger short covering. On the downside, the swing low at 22,471 offers near-term support," Rajani said.
On the hourly chart, the index continues to trade below its falling 10- and 20-EMA, with a clear lower-high structure, highlighting persistent supply. Momentum indicators remain weak, with daily RSI sustaining below 40, reflecting bearish continuation gaining strength rather than a reversal. Additionally, India VIX holding above 25 level signals elevated volatility and supports the negative undertone, said Dhupesh Dhameja of SAMCO Securities.
"From a broader perspective, the weekly chart indicates the index has slipped below its intermediate support zone, suggesting the broader structure remains fragile and rallies are likely to be sold into," Dhameja said.
De of LKP Securities said a sell-on-rise approach may remain suitable in the near term. Technically, any rebound towards 23,500 could face selling pressure, as this level is likely to act as an immediate resistance, it said.
"On the downside, a break below 22,800 may lead to further weakness in the market," De said.
Ajit Mishra – SVP, Research at Religare Broking said Nifty continues to hover near crucial support levels, indicating sustained pressure despite entering oversold territory.
"Immediate support is placed around 22,500, and a decisive break below this level could trigger further downside towards 22,000. On the upside, 23,000 is likely to act as an immediate hurdle, followed by a stronger resistance near the 23,500 zone in case of any recovery," Mishra.
Sensex outlook Aakash Shah, Research Analyst at Choice Equity said the index formed a bearish Marubozu candlestick pattern, with the intraday high nearly equal to the opening level and the intraday low almost equal to the closing level.
"From a technical standpoint, the Sensex is expected to find immediate support in the 73,000–73,100 range, which may act as a key demand zone. On the upside, resistance is placed around the 74,000–74,100 levels. A sustained move above this resistance zone would be necessary to trigger any meaningful positive momentum in the upcoming sessions," Shah said.