NIFTY OUTLOOK AND TRADING TIPS FOR 8 MARCH 22

On March 7th 2022 Monday, Nifty had a significant gap to the downside on global cues. With this open to the downside, the index broke certain short-term supports held in the 16,200-16,000 range. The larger structure shows that the Nifty has tested a 61.8% retracement of the previous April-October rally, which is near 15850. Although the index broke this key Fibonacci level on an intraday basis, it managed to hold this level on the closing basis. Local equities markets have succumbed to selling pressure and are down over 2%, dragging the Sensex and Nifty below critical levels of 53000 and 15900, respectively. The Nifty index plunged more than 2% to close at 15863 levels while Bank Nifty fell by 4% to settle at 32871 levels.

Concerns about the Russia-Ukraine conflict, as well as rising crude oil prices, drove the markets lower. Oil prices increased by more than 6%, reaching their highest level since 2008, as the US and its European allies consider imposing a Russian oil import ban, while delays in the prospective return of Iranian petroleum to global markets exacerbated supply concerns. Foreign portfolio investors (FPIs) withdrew a total of Rs 17,537 crore from Indian markets in just three trading days in March. All Asian markets were trading down on the global front, reflecting a drop in global equity markets amid increasing commodity prices and a worsening Russia-Ukraine crisis. During the continuous market turmoil, inflation fears prompted a rush for safe-haven assets, pushing the global gold price to $2,000 per ounce today. On the technical front, immediate support and resistance in Nifty 50 are 15500 and 16000 respectively. Bank Nifty's immediate support and resistance are 32500 and 35000 respectively. The channel study also shows that Nifty broke some lower channel lines today but found support near the bottom of a steeper channel. Consequently, Nifty has stopped near another support zone that is near 15800-15700 which holds the key to proceed further. On the other hand, 16200 and 16000 will now serve as hurdles in the near term. Domestic market extended the losses in Monday's session as prospects of the US and its allies imposing sanctions on Russian oil exports.

Resistance: 16800, 16900, 17000

Support: 16700, 16600, 16500