NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 14 MARCH 2023

Carnage was seen in the global market as the fallout from Silicon Valley Bank was followed by turbulence at Signature Bank, leaving investors concerned about the strength of the US banking system. Market sell-off as consensus returns to no rate hike. US inflation, due Tuesday, will also have a key impact in the near term as the market expects a slowdown from January levels. Domestic indices saw renewed selling pressure on US banking issues. Nifty opened positive but soon came under heavy selling pressure to close down 257 points (-1.5) at 17156. All sectors ended in the red with Banks and Auto down 2% each versus the big fires. At close, the Sensex was down 897 points at 58237, and Nifty was down 258 points at 17154.The India Vix surged 19% to 16 levels, suggesting increased volatility. Rising uncertainty at several mid- and small-sized companies (Silvergate Bank, Silicon Valley Bank, Signature Bank and First Republic Bank) has caused global investors to become nervous about the health of the US banking sector. Expect increased volatility until clarity emerges on the potential depth of the crisis. The US Federal Reserve's emergency damage control meeting would be crucial for the markets. Aside from that release of inflation data from India and the US along with the ECB meeting later in the week, it would be very important to monitor. Markets started the week weakly, losing nearly a percent and a half, continuing the prevailing trend. After the initial surge, the Nifty index gradually fell throughout the day, finally settling at 17,154. Selling pressure was widespread, with banking, auto and IT majors taking a heavy hit. The broader indices also fell significantly, losing nearly 2% each.

The move shows that participants are uncomfortable citing the US banking crisis and downsizing, while ignoring news of the bailout. Banking and finance firms used to act as saviors, but the tone has now completely changed, further adding to their concerns. We reiterate our negative view and see 17k as immediate support for Nifty. Traders should adjust their positions accordingly.

Resistance: 17200, 17300, 17400

Support: 17150, 17100, 17000