NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 17 FEB 2023

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Markets closed marginally higher in a trading session marked by extreme volatility. Traders appear to be adopting a cautious stance, especially after the Adani Group's shares have collapsed in recent weeks. Benchmark indices ended the volatile session on Feb. 16 on a flat note. With inflation levels picking up slightly again, there are concerns that central banks around the world could continue their rate hike trend, which could further weigh on growth and dampen sentiment. At close, the Sensex rose 44 points to 61319 and the Nifty rose 20 points to 18035. The Banknifty is struggling to surpass the 42000 mark. The main reason is that FIIs sell shares under financial names. Banking stocks performed well in 2022 while IT stocks underperformed; Hence, in early 2023, we see a tactical change in FIIs. All banks come with strong profits, but the market had already priced in good numbers. The Adani saga also caused some concern in the banking industry. However, the outlook for the banking sector remains promising and valuations are still nowhere near the highs of their good days; Therefore, this consolidation or correction is a buying opportunity. On the technical front, a small bearish candle on the daily chart is signaling some range bound activity in the near future. For the bulls, 18000-17900 would act as a key support zone, while 18200-18300 would be the key resistance zone. However, below 18000 the uptrend would be vulnerable. 42,000-43,000 will act as a resistance area in the near term, but above that we can expect fresh bullish momentum towards the 45,000 level. On the other hand, 40,000 will act as a strong base.

Resistance: 18100, 18200, 18300

Support: 18000, 17900, 17800