NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 16 MARCH 2023

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Indian stocks extended losses for a fifth straight session on Wednesday, weighed down by financials, while benign inflation data in the United States boosted the chances of a minor rate hike at the upcoming Federal Reserve meeting and limited losses. Nifty closed under 17,000 at 16,972 as it dropped 71 points. Sensex ended below 57600 and closed at 57555 as it lost nearly 350 points. Both indices rose nearly 1% during the session before reversing gains. Benchmarks reflected heavily weighted financials, which closed 0.77% lower. Ten of the 13 major sector indices posted losses. The Sensex and Nifty bucked the recovery in global markets after US inflation data bolstered bets of a minor 25 basis point rate hike by the Fed at its March 21-22 monetary policy meeting. Markets look oversold but there are clouds of uncertainty. In the short term, the Fed should be dovish. Global stocks have sold off in recent sessions on contagion fears from the collapse of Silicon Valley Bank and Signature Bank in the United States. For long-term investors, there are value picks in the current market. But to bet that markets have already bottomed is a bit premature. Global investors remain cautious ahead of the forthcoming central bank meeting, although there was some relief after the US government intervened to allay concerns about the ongoing banking crisis linked to in-line CPI inflation figures. On the domestic front, Nifty closed below 17,000 zones after a five-month gap, indicating the weak structure of the market. We expect the market to stay in negative territory for the next few days. Nifty failed to build on opening gains on March 15 and ended in the red. 16750-17150 could be the trading range for Nifty in the near future. The day that Nifty has a gap-up open and closes near the daily high could mark a short-term reversal.

Resistance: 17000, 17250, 17500

Support: 16900, 16800, 16700