Market outlook: The Sensex and Nifty witnessed a rollercoaster ride, eventually closing nearly half a per cent higher for the week. The trading day began on a subdued note, with select heavyweight stocks exerting downward pressure on the index during the mid-week. However, buoyancy in global markets towards the end of the week spurred a rebound, leading to a positive close for both benchmark indices, Nifty and Sensex, at levels of 22,096.70 and 72,831.94, respectively.

While realty, auto, and metal sectors witnessed gains, IT and FMCG sectors ended in the red, reflecting a mixed trend on the sectoral front. The broader indices also saw relief, with both gaining approximately 1.5 per cent, said Ajit Mishra SVP - technical research at Religare Broking.

Looking ahead, investors brace for heightened volatility amid a holiday-shortened trading week and the scheduled expiry of March derivatives contracts. Global indices, particularly the US markets, will continue to be closely monitored, with the Dow Jones Industrial Average (DJIA) set to test the milestone of 40,000 with support seen at 39,200 in case of profit-taking, Mishra said.

The recent upturn in the Nifty has largely been attributed to positive global cues. However, the index faces resistance around the short-term moving average, specifically the 20-day exponential moving average (20 DEMA). Analysts maintain a cautious outlook on the Nifty until it decisively surpasses the 22,200 zone, warning that profit-taking may resume otherwise. On the downside, support levels are anticipated at 21,500-21,800, he said.

With mixed trends prevailing across sectors, market participants are advised to focus on prudent stock selection and risk management strategies. Analysts reiterate a preference for index majors and large midcaps, recommending investors to utilize any rebounds in the small-cap space to reduce positions, Mishra added.