Nifty Outlook 16 Mar 2023

Our markets started trading on a positive note looking at the cues from the overnight global markets. However, the index witnessed selling pressure at higher levels and the indices gave up the gains gradually. Towards the end of the session, the selling intensified as the Nifty breached the 17000 mark and it even ended below it with a loss of almost a percent.

Nifty Today:

The global news flows continues to dampen the sentiment and hence, every pullback move in the market is getting sold into. In Wednesday’s session, the opening gains were wiped off and the markets witnessed intense selling pressure towards the end. The Nifty is approaching its important support of 17850-17920 and it needs to be seen whether is manages to show any pullback move from this zone. But if this is breached and it continues with the selling pressure, then we could see a continuation of the correction towards previous swing lows of 16750 which were lows seen in September 2022. The Bank Nifty has breached its important swing low support and hence, the trend for the banking index remains down. The momentum readings for both Nifty as well as Bank Nifty are in sell mode indicating a negative momentum. FII’s short positions are the highest in the recent times as they have more than 85 percent positions on the short side in the index futures. Thus, the data and the chart structure remains negative but it needs to be seen if any short covering takes place as positions are short heavy. One should keep a wait-and-watch approach and avoid aggressive trading for time being.

Markets witnessing selling pressure on pullback moves    

The important support for Nifty are placed around 16870 and 16750 while resistance has not shifted to 17200-17250 range. 

Nifty & Bank Nifty Levels:

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