The market seems to have recovered from the turbulent phase of the last few weeks. As the conflict between Russia and Ukraine lingers, other events such as the slowdown in oil prices and the US Federal Reserve's decision on the interest rate front, as well as comments on the pace of future rate hikes will be the focus of investor attention. Markets started Wednesday’s session briskly, gaining almost 2% after taking a breather in Tuesday’s session. Supportive global cues prompted a gap-up open, however caution ahead of the Federal Reserve meeting result slowed the move later in the day. Meanwhile, strong participation from the broader markets kept participants on their toes. Decline in FII sales and crude oil prices reinforce domestic trend. Positive global cues and a strong rebound in the Chinese market in anticipation of stimulus supported the trend. The market has erased all of the previous days' losses and is up 1.87% on March 16, tracking the rally of its global counterparts ahead of the Federal Reserve meeting result. After a gap-up open, the index showed strength throughout the session, managing to close on a higher note at 16975 for a gain of 312 points, while Bank Nifty gained 2.07% and settled at 35748 leveled off. The world stock market has stabilized when factoring in a 25bps hike by the US Federal Reserve, a policy outlook that will ease the market and we may see a drop in volatility.Markets will first react to the outcome of the US Federal Reserve meeting in early trading on Thursday 17 march 2022. In addition to global updates, the planned weekly expiry would further increase volatility i.e. on March 17, 2022 tomorrow. We recommend posting some rising gains, pointing to immediate hurdles around the 17000 zone and focusing on identifying opportunities in sectors trading in sync with the benchmark. The Nifty formed a bearish outside bar on the daily chart on March 15th. However, the bulls hit back on March 16, breaching the peak of the bearish pattern. It has also marginally breached a falling trend line and the 40 DEMA. However, it will be crucial to monitor whether the index holds above these parameters. On the higher side, the Nifty is staring at the key barrier of 17000, which is the make-or-break level from a short-term perspective. If the index manages to surpass 17,000 at the end, it faces a jump towards 17200-17500. On the other hand, a failure near 16800, would pull the index back to 16,500. The market ended in a decent gain after a bearish close in the previous session. However, the recovery has taken the Nifty towards the 200-day moving average. Well, as long as the Nifty stays below 200DMA, we can expect volatility in the market. On the lower end support is seen at 16500 while on the upper end 17000 is likely to act as resistance on the closing basis. The trend reversal over the past few sessions is also due to the market being in an oversold territory for the past few weeks. Technically, the Nifty is maintaining a higher high and low formation on intraday charts and is now heading towards 17000 and 17200 respectively. We think the current texture is likely to persist unless the index falls below the 16800-16600 levels. Above this level, the Nifty could rally to levels of 17200-17500. On the other hand, traders may prefer to take a cautious stance when the index falls below 16800 and below, chances of reaching 16700-16600 would be better.
Resistance: 17000, 17100, 17200
Support: 16900,
16800, 16700
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