Understand the Weekly Nifty 50 technical analysis trends! Get insights on key technical signals, FII flows, and market sentiment in this weekly update. Stay ahead.
The Indian stock markets have been struggling for quite some time amid volatile geopolitical events and overvaluation fears for stocks after the recent bull run. Let us take a look at the weekly Nifty 50 technical analysis update and Indian stock market trends.
Market Overview
The Nifty 50 Index witnessed a high of 26,277 on 27th September 2024, after this day, the trend of the index followed by whole markets reversed, and on 4th March 2025, Nifty made a low of 21,964, a fall of 16.41%.
After this recent correction, the sentiment in the markets has been very bearish, but since making a low of 21,964 on 4th March, the markets have seen some recovery, and the index closed 6.3% higher at 23,350 on 21st March 2025.
The recent recovery in the market could be due to various reasons, such as
- FII Flows: As you can see in the table below both FII and DII have been net buyers of stocks (cash segment) in the previous week.
| Date | FII Net Cash Flow (₹ Cr.) | DII Net Cash Flow |
| 21 March | 7,470 | – 3,202 |
| 20 March | 3,293 | – 3,136 |
| 19 March | – 1,097 | 2,141 |
| 18 March | 1,463 | 2,028 |
| 17 March | – 4,488 | 6,001 |
| Total | 6,641 | 3,832 |
Source: Sensibull
- Inflation: The Indian inflation for February 2025 stood at 3.61%, which is within the RBI’s target rate of 4%. Investors believe this can lead RBI to cut rates.
- International Events: Investors are also worried about the uncertainty caused by the US government’s new tariff policy and the retaliation tariff imposed by other countries. This can make India a good avenue for foreign investors to park their funds.
Weekly Nifty 50 Technical Analysis
The weekly chart of the Nifty 50 index shows that the index has taken support at its 100-week Exponential Moving Average (blue line) in the past, as marketed by green arrows.
The recent price action suggests that the index might be again taking support on its 100-week EMA line and bouncing back off. This can be confirmed by the most recent green bullish candle that closed above the 50-week EMA.
Source: Tradingview
Although there are no major Nifty 50 chart patterns in the previous week, the Nifty 50 index, on its daily chart is showing the following technical signals:
Source: Tradingview
- It crossed above its 200-day EMA (Green Line) on 24th March 2025, which is a bullish signal for the index.
- The two red horizontal lines show the 24,000 and 24,200 levels, which is the next resistance zone for the index. The index has a low chance of facing any immediate hurdle until this range.
- Another signal that confirms the bullishness and makes 23,500 a strong support is a build-up of put option open interest (that shows traders are selling put options as they believe that the market will rise) at the 23,500 level on 24th March 2025. Thus making it a strong support.
Source: Sensibull (27th March, 2025 Expiry)
These signals show the bullish sentiment in the Nifty 50 index, now let us look at what price action signals traders should watch out for in the future for the Nifty 50 index.
Nifty 50 Trading Strategies: Signals to Watch
Here are the signals that traders should watch out for this week:
Bullish Signals
Source: Tradingview
- The Nifty 50 index has to close above its 200-day EMA (green line) to confirm a bullish sentiment.
- There is a significant put option selling at 23,500 levels, as of 24th March 2025, making it a strong support level. If the markets close below this level, there might be some selling pressure.
- Nifty 50 Support and Resistance levels shows that there is a significant resistance level in the 24,000 -24,200 zone, as suggested by previous price action.
- Confirmation of a bullish move can be received from the MACD index line (blue) crossing and trading above the zero line for a few trading sessions.
Source: Tradingview
Bearish Signals
Along with the bullish signals in the Nifty 50 index, traders should also watch out for these levels for bearish moves.
- If the index moves below its 200-day EMA, it can be a bearish signal.
- Any significant FII/DII outflows for the week can push the index downwards.
- Any news or event that is negative for broader investors’ sentiment might also trigger selling.
Price Action of Other Index
Let us also look at some major stock market index performances of the previous week to understand the Indian stock market trends.
| Index | % Change (Week: 17 – 21 March 25) |
| Nifty MidCap 150 Index | 7.27% |
| Nifty SmallCap 250 Index | 8.24% |
| Nifty Bank Index | 5.27% |
| Sensex | 4.17% |
This shows that there was widespread bullish sentiment throughout the market in the previous week.
The week of 17 – 21st March 2025 was also bullish for the Indian rupee. The USD-INR fell over 1%, showing the strength of the INR, and weakness of the UD dollar. INR closed last week at around 86 levels. (approx)
Conclusion
The weekly Nifty 50 technical analysis update shows us that the index was very bullish in the previous week, followed by other major stock market indices. This might increase the probability of the bullish trend continuing, but it does not guarantee a bull market continuation. Investors must always remember that Indian stock market trends change over time. Please consult your investment advisor before investing.
- Weekly Nifty 50 Technical Analysis: Market Sentiment Decoded - April 21, 2025
- Weekly Nifty 50 Technical Analysis: Market Update - April 14, 2025
- Stock Market Update:Weekly Nifty 50 Technical Analysis - April 7, 2025
