Nifty Outlook 23 Mar 2023

Nifty traded within a narrow range in Wednesday’s session as the market participants are awaiting for the FED meeting outcome. Nifty ended the day around 17150 with marginal gains while Bank Nifty ended the session around 40000 mark.

Nifty Today:

Ahead of the weekly expiry day, our markets traded in a narrow range as participants are waiting for the outcome of the Fed event which could drive the momentum in the short term. Nifty has witnessed a pullback move in the last couple of sessions from its support zone of 16800-16900, but is yet to cross its near term hurdle of 17225. Also the Bank Nifty is trading below its 20 DEMA support and a breakout above these resistances are required for any upmove in the market. If we look at the derivatives data, FII’s hold record high short positions in the index futures segment with 92 percent of their positions on the short side (mainly in Nifty Futures), while the Client segment has significant long positions outstanding. So it seems to be a tug-of-war with both the parties and a directional move would be seen when either of them will be in a hurry to unwind these positions. Hence, this global event of FED policy could be the trigger that could lead to such unwinding of positions.

Record short positions by FIIs, Fed outcome a key trigger for markets

Traders are advised to watch on global cues at open tomorrow and trade in that direction. As far as levels are concerned, the 20 EMA hurdle for Nifty is around 17320 while 16850 will be seen as crucial support.  

Nifty & Bank Nifty Levels:

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