NIFTY OUTLOOK AND TRADING TIPS FOR 7 MARCH TO 11 MARCH, 2022

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WEEKLY RESISTANCE FOR NIFTY: 16400, 16600, 16800

PIVOT POINT: 16200

WEEKLY SUPPORT FOR NIFTY:  16000, 15800, 15600

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 16300, 16400, 16500

PIVOT POINT: 16250

DAILY SUPPORT FOR NIFTY:  16150, 16050, 15950

DAILY CHART FOR NIFTY

The Indian stock market got off to a dismal start to the shortened week on 28 feb 2022 Monday, which saw broader indices plummet in early trading amid mixed Asian bourses. Gradually, the market picked up some traction from the lower spots as buying sentiment picked up across the board and the benchmark Nifty50 rose almost 0.81 percent to end the day in green, a bit below the 16800 level Tuesday was closed on accounts on Mahashivratri. On Wednesday, the Indian stock market tumbled in early trade amid weak GDP numbers and concerns over geopolitical tensions. Our domestic market started with a gap to the downside and gradually wobbled throughout the day until bulls emerged in the last hours of the day. However, the benchmark index corrected nearly 1.12 percent to end the day in red, slightly above the 16600 level. Market closed lower on Thursday, failing to hold earlier gains. Broader domestic markets also ended lower, with the Indian VIX down 3.8%. European stocks fell, US futures slid and oil soared to its highest level since 2008. The Indian market started trading fairly higher today, following firm global market signals after a day of huge sell-offs, but indices soon trimmed opening gains and were modestly higher Markets remained volatile and settled with a decline of over half a percent, continuing the prevailing trend. Firm global markets started an uptrend in early trading, but it didn't last long, gradually slipping lower throughout the day. Consequently, Nifty closed around the daily low and settled at 16498 down 0.65%. On the sector front, a mixed trend was observed with Energy, IT and Metals enjoying decent traction while Auto, Banking and FMCG traded lackluster. Benchmark indices ended lower with Nifty below 16,300 in the volatile session on March 4. At close, the Sensex is down 768.87 points at 54333., and the Nifty was down 252 points at 16245.

NIFTY: A STRONG SUPPORT WILL BE @ 16000; STRONG RESISTANCE LEVEL SEEN @ 17000

There is also no relief regarding the war between Russia and Ukraine, so we are not fully out of the woods until things stabilize there. Given the higher volatility, wild swings or opening surprises on either side can wipe out leveraged traders. Therefore, we advise traders to avoid aggressive overnight betting for a while. The Nifty had recently stumbled near the 16800 level and started sliding lower. The selling pressure continued on March 4th. Consequently, the index broke the swing low of 16203 and the bottom of a down sloping channel. However, the Nifty received support in the lower area; this staged an intraday rally, but the intraday rally fizzled out near the key hourly moving averages. Still, the index managed to hold the 16200 level on a closing basis. The overall structure shows that the Nifty is trading near several support parameters and can see a recovery as long as it stays above 16000-15800 on a closing basis.

TECHNICALLY SPEAKING

On the downside, as long as the index trades below 16200, selling pressure is likely to continue. Below that, the corrective wave will last until 16000-15800. Technically, Nifty has formed a bearish candle on a weekly timeframe, indicating weakness in the counter. Furthermore, the index has been trading with lower highs and lower lows for the past 5 weeks, suggesting a trip south in the coming day. Additionally, the index has held below 200-DMA, further weighing on prices. A momentum indicator Stochastic and MACD on the daily chart were suggesting a negative crossover, signaling further downward movement for the index. Index may test physiological level of 16100, break below may show 15900-15700 while upside resistance stands at 16700. On the upside, Bank Nifty has support at 34500 and resistance at 35500.