NIFTY WEEKLY OUTLOOK FOR 20 MARCH TO 24 MARCH 2023

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WEEKLY RESISTANCE FOR NIFTY: 17200, 17400, 17600

PIVOT POINT: 17000

WEEKLY SUPPORT FOR NIFTY:  16900, 16700, 16500

WEEKLY CHART FOR NIFTY

This week beginning March 13, 2023, the market started on a strong note, with the benchmark index retesting the 17500 zone within minutes of the opening bell. However, it appeared to be false momentum as the index reversed to curb early gains and gradually dipped into negative territory. Amid the hustle and bustle, the Nifty50 index slipped to a new low of 1.49 percent in the current calendar year and settled around the 17150 mark. On March 15, 2023, positive developments in the overseas market led to an encouraging start in our Indian market, where the benchmark index opened a decent gap to the upside. But just after the opening bell, the index gradually slipped to test the previous day's close, trimming any initial gains and sentiment. Also, the sell-off at the end of the butt worsened, pushing the index into negative territory, slipping below the psychological 17000 level. Without pausing the sell-off, Nifty continued its downtrend for the fifth straight session, settling a bit below the 17000 level, shedding 0.42 percent. The Indian stock market had a volatile trading day, with the benchmark index Nifty50 getting off to a gloomy start, slipping to lows of 16850. But soon after, some rebound was seen on the lower bottoms, leading to a modest recovery as the Index broke its losing streak. Amid the intense tug-of-war, the Nifty50 index closed the weekly decline session on a muted note, shedding 0.08 percent gains and settling just below the 17000 level. On March 16, 2023, the Indian stock market had a volatile trading day, with the benchmark index Nifty50 getting off to a gloomy start, slipping to the low of 16850. But soon after, some rebound was seen on the lower bottoms, prompting a modest recovery and the index ended its losing streak. Amid the intense tug-of-war, the Nifty50 index closed the weekly decline session on a muted note, shedding 0.08 percent gains and settling just below the 17000 level. On March 17, 2023, indices closed higher in the volatile March 17 session with Nifty at 17100. At the close, the Sensex was up 355 points to 57989 and the Nifty was up 114 points to 17100. Around 2008, stocks rose, 1407 stocks fell and 118 stocks remained flat. These included HCL Technologies, Hindalco Industries, UPL, UltraTech Cement and Nestle India

NIFTY BANKNIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

We expect the Nifty to consolidate between 16800-17200 parameters from the next few trading sessions. we believe that the pullback rally has some more steam left and the Nifty is likely to carry on this positive momentum next week as well.

TECHNICALLY SPEAKING

After the strong rebound in global markets, domestic indices took a breather on hopes of some relief from the global banking turmoil. Global equities reversed their selling streak after reports of a rescue package for the ailing First Republic bank, along with bailout from the Swiss central bank to Credit Suisse, which would allay concerns about global financial stability. On the other hand, the ECB further hiked rates by 50 basis points, signaling its willingness to provide banks with liquidity if needed.On the upside, the 40 hourly moving average and hourly upper Bollinger band in the 17150-17200 range acted as strong resistance and further restricting upside and on the downside, the swing low formed at 16850 should be supported serve as crucial support in the short term perspective. We expect the Nifty to consolidate between these two parameters over the next few trading sessions. We believe the pullback rally still has some more steam and the Nifty is likely to continue this positive momentum next week. What we are seeing is a recovery rally, supported by strong positive global evidence, as the US Federal Reserve is expected to refrain from aggressive rate hike moves to tame inflation. Some worries about the declining financial health of the US banking industry have also subsided, further boosting market sentiment. Falling crude oil prices and a rebound in the metals sector on hopes of a Chinese economy revival are also providing some support to struggling markets.