NIFTY WEEKLY OUTLOOK FOR 20 FEBRUARY TO 24 FEBRUARY 2023

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WEEKLY RESISTANCE FOR NIFTY: 17900, 18100, 18300

PIVOT POINT: 17800

WEEKLY SUPPORT FOR NIFTY:  17600, 17400, 17200

WEEKLY CHART FOR NIFTY

We got off to a slow start on the morning of February 13, 2023 as indicated by the SGX Nifty. However, in the first hour itself, the benchmark index drifted lower, led by financials. The Nifty almost tested the 17700 level and then a modest recovery took place during the remainder of the session. Finally, we ended the session below 17,800, removing nearly half a percent from the previous close. On 14 February 2023, SGX indicated a muted start, our markets opened convincingly with a decent move above the 17800 level. Barring an initial small pullback, the index maintained its positive stance throughout the remainder of the session. With a steady upward move, the Nifty finally managed to close above 17900, which is its highest level in the past three weeks. In this way, the cops managed to stock up on nearly one percent of their cat. On February 15, 2023 US markets reacted negatively to unfavorable inflation numbers overnight. The Asian screen clearly reflected this development in the morning as we saw weakness globally. We also started the unit cautiously and remained slightly under pressure in the first half. However, markets took off just in the last 45 minutes of trading to add another half percent gain; 18000 arable for the first time after January 25th. The bounce on February 15, 2023 was followed by a decent surge when it opened on February 16, 2023. Benchmark index Nifty continued its march above 18100 for the first hour. However, the battle continues once again at higher levels. Our key indices continued to drift lower. Finally, as banking sulked again, Nifty finished the penultimate weekly expiration with negligible gains above the 18,000 mark. Lack of major triggers in the domestic market is attracting global cues to dictate the market trend. The US market is facing an unfavorable combination of higher-than-expected inflation and a stronger job market. The PPI (Producer Price Index) in the US came in at 6.0%, in contrast to the expectation of 5.4%. This suggests that interest rates have not yet peaked and will remain elevated for a long period. On Friday 17 feb 2023 the Sensex was down 316 points at 61002, and the Nifty was down 91 points at 17944.

NIFTY BANKNIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

As far as levels are concerned, 17900 should be treated as a key support, which we believe may not get broken easily. On the flipside, 18100 - 18200 - 18300 are to be seen as major hurdles.

TECHNICALLY SPEAKING

The Nifty has fallen to the upper band of the falling channel on the daily chart. The trend for the near term is likely to remain sideways to positive as long as it remains above the falling channel.For the bulls, 17,900-17,800 or 20-day SMA would act as a key support zone while 50-day SMA or 18,100 and 18,200 could be the immediate hurdle. On the flip side, the selling pressure could accelerate if the index slips below 17,800 and in case of further correction, it could slip to 17,700-17,650.The Bank Nifty index on the daily chart witnessed a breakdown with a rise in volumes. The index remains in a sell mode as long as it sustains below the level of 41500.The index immediate support stands at 41000 and if it fails to sustain it on a closing basis will accelerate the downside move towards 40,000 levels.