Nifty Holi 2025 outlook: Is the index showing early signs of revival now? | Stock Market News

Nifty outlook post Holi 2025: As Nifty navigates a no-trade zone between 22,200 and 22,500, analysts point up early signs of positive sentiment, despite strong resistance at 22,700. With technical indicators and foreign investment trends at play, the market’s next moves are crucial for investors to watch closely.

Nifty performance during week ending March 13

The Nifty 50 index started the week on a flattish note, opening around 22,520 on Monday and climbing to 22,676, which, according to experts, coincides with its 20-day exponential moving average. However, this level acted as a strong resistance, leading to profit booking that dragged the index down to 22,314 in the following session, says Chandan Taparia, Senior Head of Derivatives & Technical, Wealth Management, Motilal Oswal Financial Services Ltd.

Over the past couple of sessions, Nifty has been stuck in a 250-300 point range, lacking a clear directional move. It formed a bearish candle and an inside bar on the daily frame, indicating that pressure is intact at higher zones, Taparia noted.

Nifty 50 index outlook

The Nifty index managed to outperform other emerging markets last week, even though it ended 0.7 per cent lower week on week to close positive despite negative sentiment in global markets. This indicates that market participants do not anticipate a major correction in the Indian market at current levels, say analysts.

Additionally, smart money has reduced the intensity of selling in the Index, suggesting that bearish sentiment is easing. The index has successfully held above the 22,200 level, which has been a strong support over the past two sessions. 

“An increase in short buildup at the 22,200 PE further indicates that traders expect the market to remain above this level. Despite the index closing near 22,500, surpassing 22,700, this week could be challenging, as it remains a strong resistance zone. Moreover, option writers at the 22,700 strike have started adding fresh shorts, reinforcing this resistance,” said Kunal Kamble, Sr. Technical Research Analyst at Bonanza Group.

As per experts, the market is showing early signs of positive sentiment, supported by both data and technical indicators. However, the index is currently trading within a no-trade zone (22,200–22,500), and a breakout beyond this range will be necessary for a decisive move.

Role of foreign portfolio investors 

“The FIIs’ long-short ratio is hovering around 17-18 levels. Increasing Put Call Ratio from the lower zone and decreasing India Vix indicates buying at lower levels but momentum is missing at higher levels. Now it has to hold above 22,330 zones for an up move towards 22,650 and then 22,800 zones while supports can be seen at 22,300 and then 22,222 zones,” Taparia added.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.