Market Outlook for 13 March 2024

The benchmark indices traded within a range in Tuesday’s session, but the volatility was high within the range and after movement on both the sides, Nifty ended the day around its previous day’s closing.

Nifty Today:

Our markets witnessed high volatility during the day, esp. the Bank Nifty and Fin Nifty index where huge moves were seen on both the sides of the trade. However, the benchmark is still trading above its crucial support and hence the broader trend in the Nifty remains intact. The immediate support for Nifty is placed around 22250 which if broken, then we can see some decline towards 22200-21950 which is the sacrosanct level. But the broader markets have been correcting sharply as they had already shown a negative divergence wherein the new high in Nifty during last week was not confirmed by a new high in the midcap and the small cap index. Hence, we continue with our advice to be stock specific from a short term perspective. On the higher side, the options data hints at resistance around the 22500 mark as significant open interest is seen in call options of this strike price. This hurdle needs to be surpassed for a continuation of the upmove in the index and traders should keenly watch which side the index gives a breakout first.

                             Selling continues in small caps, but important supports intact in benchmark

Nifty, Bank Nifty Levels and  FINNIFTY Levels: