NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 10 MARCH 2023

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Sensex resumes downtrend on Thursday, falling 542 points; while nifty slips below 17,600; Selling pressures came to the fore after 3 days of recovery rally as the US Federal Reserve signaled another rate hike to inflation and reignited concerns over slowing growth. Also, rising bond yields in recent sessions suggest that risk aversion in equities will remain dominant and liquidity could be tighter. The domestic market struggled to hold on to earlier gains as the Fed Chair's reaffirmation of his hawkish stance raised further concerns. With this in mind, the upcoming US jobs data will have a significant impact on Fed policy decisions at their upcoming FOMC meeting. An unexpectedly strong jobs report will prompt the Fed to hike rates by 50 basis points. Indian benchmark indices closed lower on March 9th with Nifty around 17600. At the close, the Sensex was down 541 points to 59806 and the Nifty was down 164 points to 17589.

Technically, the Nifty has formed a long bearish candle on the daily charts, supporting further weakness from current levels. The drop on the hourly charts suggests that a correction is in the works and thus this drop is unlikely to result in a trend reversal. In terms of price pattern, the Nifty could be about to form a bullish flag pattern. For the bulls, 17700 would act as an immediate resistance zone. Below that, the index could slip as low as 17550-17500. On the upside above 17725 saw a small intraday pullback rally to 17750-17800.

Resistance: 17700, 17750, 17800

Support: 17600, 17550, 17500