NIFTY PREDICTION FOR WEDNESDAY MARCH 2, 2022

It was a highly volatile trading day and benchmark indices fluctuated wildly before finishing higher despite lingering concerns over the ongoing battle between Russia and Ukraine. A major concern for India has been rising crude oil prices, which will increase the bill for oil imports and subsequently trigger a surge in inflation. The Nifty opened a gap to the downside on Feb 28 only to attract new buying support near 16450-16400. The index then recovered over the course of the day. On the upside, it tested the crucial 16800 barrier that constrained the upside for the day. The intensified conflict between Russia and Ukraine as well as new sanctions against Russia by the world powers weighed on western markets. Despite opening on a negative tone, domestic indices staged a strong recovery, buoyed by metals stocks and positive Asian markets. Metals stocks rallied on hopes that curbing Russian exports would help Indian steelmakers capture export market share. Domestic investors are eagerly awaiting the release of Q3 GDP data later today, which is forecast at 6.5% vs. 8.4% in Q2. Benchmark indices ended February 28 for the second straight day on positive buying in metals, oil & gas, energy and IT stocks. To finish, the Sensex was up 388 points, to 56247 and the Nifty was up 135 points, to 16793.

Technically, the Nifty has formed a long bullish candle that is largely positive. the Nifty index has formed a long green candle and sustained above the Lower Bollinger Band formation but still trading below the 200-Days SMA. Moreover, on an hourly chart, the index shifted above 21-SMA, which suggests further recovery. A momentum indicator RSI has pulled up from the oversold zone & Stochastic witnessed a positive crossover, which indicates short covering for the near term. Currently the market is trading between 16550-16750 price ranges. In the last hour of trading it broke above the 16775 resistance but it would be interesting to see if the index would be able to hold the level. For traders, 16650 would be the immediate support level to watch out for and above that the index could continue momentum to 16800-16900. However, a move away from 16750 could potentially trigger another corrective wave to 16600-16500.

Resistance: 16800, 16900, 17000

Support: 16700, 16600, 16500