Market Outlook for 14 March 2024

Our markets witnessed a sharp correction in today’s session as the mid and the small cap stocks continued the downmove and the large caps too faced the heat. Nifty breached the support of 22250 which led to further sell-off and the index ended below 22000 with a loss of one and a half percent.

Nifty Today:

Recently, we witnessed a negative divergence in Nifty and the Midcap/Small cap indices where the new high in the former index was not supported by a new high in the latter. Such divergences usually lead to a corrective phase and this has resulted in the ongoing correction in last couple of days. While the midcap and the small cap indices already breached their support and had negative momentum, Nifty too witnessed a sell-off and the index has ended right around its 40 DEMA support. The RSI on the daily as well as the weekly chart has turned negative and hence one should continue to trade with a cautious approach. The immediate support for Nifty is placed around 21850-21800 zone which will be important to watch. A move below the same would hint at unwinding of positions in the large caps too. The major short term support for the index thereafter would be seen around 21400-21300 zone. On the higher, the immediate resistance on pullbacks will be initially seen in 21250-21300 zone. 

                                                      Nifty breaks 22000 mark due to sharp sell-off

The midcap and the small cap shares witnessed a catastrophic move and has broken all important supports. The correction was anticipated as per the divergences with the Nifty, and until we see any positive sign one should stay light on positions in this segment.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: