Nifty Surges Past 23,000: Can the Rally Sustain After 800-Point Jump?

Benchmark indices continued their winning streak on March 20, with Sensex and Nifty posting strong gains for the fourth consecutive session. Bolstered by broad-based buying and positive global cues following the US Federal Reserve’s decision to maintain its rate-cut projections, markets surged over 1 percent.

The Sensex jumped 899.01 points (1.19%) to close at 76,348.06, reclaiming the 76,000 level and touching an intraday high of 76,456.25. Meanwhile, the NSE Nifty soared 283.05 points (1.24%) to settle at 23,190.65, crossing the crucial 23,000 mark.

Key Market Drivers & Technical Outlook

Over the past four sessions, Nifty has climbed nearly 4%, gaining 793.45 points. It has now closed above its 50-day exponential moving average (EMA) for the first time since February 5, 2025.

According to Ruchit Jain, VP and Head of Equity Technical Research at Motilal Oswal Financial Services, market sentiment has improved due to a cooling dollar index and short-covering by foreign institutional investors (FIIs). “The Long-Short Ratio of FIIs has improved from 15% to 27% as of Wednesday, fueling the rally. The momentum could extend towards the 200-day EMA, positioned between 23,400 and 23,600,” he noted.

Senior Technical Analyst at LKP Securities, Rupak De, echoed similar sentiments, pointing out that Nifty has given a falling trendline breakout on the daily chart, signaling a bullish reversal. “Holding above the 21-day EMA for three sessions in a row confirms a short-term uptrend. RSI has surpassed its previous swing high, further boosting confidence. Nifty could move toward 23,400 and beyond, with immediate support at 23,000,” he added.

Midcaps and Smallcaps Continue to Shine

The broader market remained strong, with the Nifty Midcap 100 climbing 0.64% and the Nifty Smallcap 100 rising 0.7%. Market breadth favored advances, with 2,289 stocks gaining, 1,575 declining, and 110 remaining unchanged on the BSE. The advance-decline ratio stood at 1.50, reflecting sustained buying interest in mid and smallcap stocks.

As the Nifty continues its upward momentum, investors are watching whether the rally can sustain its strength in the coming sessions.