Nifty Outlook 24 Mar 2023

Nifty started the weekly expiry day marginally negative below 17100 as hinted by the SGX Nifty. However, the index recovered from the lows gradually and rallied upto 17200 during the day. But it was not over yet, the typical last half an hour volatility on the expiry day resulted in a sharp down move towards the end, and Nifty ended the day below 17100 with a loss of about half a percent.

Nifty Today:

Market participants were waiting for the outcome of the FED meeting and its impact on the global markets. The U.S. markets witnessed sharp correction on Wednesday, but our market showed resilience and recovered from the opening lows. However, both Nifty and the Bank Nifty index were unable to surpass their hurdles and witnessed a sell-off towards the end. In last one week, Nifty has traded within a range where it has witnessed selling pressure near 17200-17225 range. This acted as a resistance again and the Nifty Bank index resisted at its ‘20 DEMA’. Until the indices now surpass these highs, the near term momentum remains weak as FIIs still have short heavy short positions and seem not willing to cover them. Hence, traders should be cautious in pullback moves and until we see short covering by the FII’s, one should avoid aggressive long formations. 

Markets witnessed selling pressure on pullback move on expiry day

For the near term, immediate support for Nifty is placed around 17000 followed by recent swing low of 16900-16850 range while resistances are seen around 17225 and 17300.

Nifty & Bank Nifty Levels:

​