Market Outlook for 22 March 2024

Nifty started the weekly expiry day with a gap up opening based on positive cues from FED’s statement and the global markets. The index oscillated in a range throughout the day and ended the day marginally above 22000 mark with gains of eight-tenths of a percent.

Nifty Today:

Our markets reacted positively to the global markets reaction on the Fed’s interest rate decision and commentary. The index reclaimed the 22000 mark led by participation from the broader markets. In last few days, Nifty had already corrected about 800 points from the highs and hence the momentum readings were oversold on the lower time frame charts ahead of the event. The positivity in the global bourses led to the much awaited pullback not only in the benchmark, but also in the midcap and the small cap space which had corrected sharply in last couple of weeks.

Now, it is too early to say that the markets have bottomed based on one day’s up move and hence, the follow up move in the near term will be crucial to see. As of now, Nifty seems to be retracing the recent correction where markets halted its momentum around its initial resistance of 22080. A move above this Thursday’s high could lead to a continuation of the move towards the 50 percent and the 61.8 percent retracement levels which are seen around 22120 and 22215. On the flip side, 21800 will be the support level which if breached, then it could lead to a down move up to 21500. Traders are advised to keep a tab on the above levels and trade according to the momentum.

                                   Nifty breaks important support, selling seen in defensive sectors

Nifty, Bank Nifty Levels and  FINNIFTY Levels: