NIFTY WEEKLY OUTLOOK FOR 13 MARCH TO 17 MARCH 2023

WEEKLY RESISTANCE FOR NIFTY: 17500, 17650, 17800

PIVOT POINT: 17350

WEEKLY SUPPORT FOR NIFTY:  17300, 17200, 17100

WEEKLY CHART FOR NIFTY

We kick started the week from 6 march 2023 on a strong note taking favorable global cues into a consideration. In the initial hour, the move extended to reach the 17800 mark. However, the traders chose to take some money off the table at higher levels, which resulted in a gradual decline throughout the remaining part of the session. Eventually, the Nifty managed to hold nearly seven tenths of percent gains to conclude tad above 17700. On 7 march 2023 market was closed on occasion of Holi.  The US markets reacted negatively to the remark of the FED Chairperson on the rate hikes and taking cues from there the SGX Nifty indicated a weak opening. In line with this, our markets had a gap-down opening on 8 march 2023 however post the initial hiccup there was a gradual bounce back to recover the lost ground. During the fag end there was a strong positive traction that eventually resulted in Nifty ending with gains of 0.24% tad above 17750.. Our markets witnessed a marginally positive opening on 9march 2023; however right from the word go prices started to slide lower forming an open high kind of scenario. During the midst, there was a mild bounce back that was inferior to the Bank Nifty. Eventually, this bounce as well got sold into as one more round of profit booking resulted in Nifty ending below 17600 with a loss of around nine-tenths of a percent. On 10 march 2023 indices ended lower for the second consecutive session on March 10 with Nifty around 17400. At Close, the Sensex was down 671 points at 59135, and the Nifty was down 176 points at 17412.. The global market's cautious attitude towards the probability of a sharper rate hike was exacerbated by further negative signs from the US market. Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, which will have a significant impact on the upcoming Fed meeting. However, higher-than-expected jobless claims in the US that came in yesterday helped alleviate some concerns about the Fed becoming stricter.

NIFTY BANKNIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

The Nifty developed a Bearish Engulfing pattern and further bearishness is also confirmed as the Nifty closes in the red today. Nifty's pivotal levels to watch are support at 17300 and the 200 EMA at 17700.

TECHNICALLY SPEAKING

Technically, the Nifty has formed a strong bearish candle on weekly charts and it is comfortably trading below the 20 and 50-day SMA. For the positional traders, 17500 would act as a medium term resistance zone and below the same, the index could slip till 17100. On the flip side, a minor pullback rally is possible, if the index trades above 17450 and could move up to 17500 -17600. Meanwhile, the Bank Nifty also breached the important support level of 4,000 or 20-day SMA (Simple Moving Average) which is broadly negative. Below the same it could retest the level of 40,000-39,800. The sentiment has been bruised by the recent US Fed statement that more rate hike is on the card to keep inflation under control, which could fuel recession fears going ahead.