NIFTY WEEKLY OUTLOOK FOR 3 APRIL TO 13 APRIL 2023

The major indices continued their upward trend for the fourth straight day, with the Sensex rising 582 points and the Nifty closing 161 points higher. IT, FMCG and financial sector indices all posted gains of over 1%, while PSU banks and auto companies posted intraday gains. Technically, after a solid start, the market maintained its uptrend throughout the day. For the first time in a long time, the Nifty closed above the 200-day SMA level and created a long bullish candle on the daily charts, both of which are generally encouraging signs. However, we believe that the market structure is strong in the short term, temporary overbought situations can lead to profit taking at higher levels. The current level of resistance for traders for next week would be 17600-17800/60000-60500 while the key support area would be 17500-17300/59500-59000. Uptrend would be jeopardized if breaks below 17500/59000 levels.