NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 24 MARCH 2022

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Volatility continued to be the mainstay as the market is aware of some dangers that could quickly lead to a serious crisis. Despite some greenshoots in the form of FIIs turning net buyers in recent trades, investors remain wary amid the Ukraine conflict, rising US yields and volatile crude oil prices that could turn the tables. As today marks the second anniversary of the Covid lows, Nifty has actually come a long way by posting a whopping 127% return since then. The Indian investor has shown the courage to change the investment landscape by believing in equities as an asset class, even as FPIs pulled back in a big way. Benchmark indices closed lower with Nifty below 17300 in the volatile March 23rd session. At the close, the Sensex was down 304.48 points to 57684 and the Nifty was down 69 points to 17,245. Approximately 1424 stocks are up, 1891 stocks are down, and 118 stocks are flat. Volatility continued to be the mainstay as the market is aware of some dangers that could quickly lead to a serious crisis. Despite some greenshoots in the form of FIIs turning net buyers in recent trades, investors remain wary amid the Ukraine conflict, rising US yields and volatile crude oil prices that could turn the tables. After the recent rally, the market is turning cautious. Volatility has returned due to inflationary pressures triggered by supply constraints. Whilst steadily raising input costs and a fall in demand due to rising Covid cases in parts of the world, war and high commodity prices are weighing on earnings growth which may result in a worsening outlook. An end to the war and an increase in supply can help India maintain its resilience, or it will become a challenge in the short term. The bullish momentum seen in early trades suddenly lacked buy-side conviction as the bears took control of the daily session. The street will spy with a wide eye if Nifty is able to weather overbought technical conditions on the daily charts, aggressive tunes from the Federal Reserve and the surge in oil prices. Technically, the make-or-break of the Niftys support at 200 DMA is seen at the 17021 level, while a waterfall sell below the 17021 level is expected. On the intraday and daily charts, the Nifty is holding a higher bottom formation while at the same time consistently facing resistance near 17440. For the traders, the Nifty support has moved from 17000 to 17200. We expect the 17300-17500 level if the index manages to trade above 17200. On the upside, move away from 17180 could amplify further weakness to 17100-17000.

Resistance: 17300, 17400, 17500

Support: 17200, 17100, 17000