Nifty Outlook 8 March 2023

Ruchit Jain Ruchit Jain Ruchit Jain 8th March 2023 - 05:16 pm
Listen icon

Ahead of the mid-week holiday, Nifty started Monday’s session on a positive note and witnessed a rally upto 17800 in the first half of the trade. However, the index gave up some of the gains in the later part and ended the day tad above 17700 with gains of over 100 points.

Nifty Today:

 

The indices have seen a sharp pullback move in last couple of trading sessions and have retraced some of the recent losses. The major concern seen in the recent corrective phase was the FII’s short positions in the index futures segment where they had around 85 percent of positions on the short side during last week. However, they covered some of their short positions on Friday and their ‘Long Short Ratio’ improved to around 23 percent. This indicates that the stronger hand have started covering their short positions and other data such as upmove in global markets and appreciation in INR indicated positive biases for the equities.

The momentum readings on both Nifty as well as BankNifty are on the buy side and hence, any declines are likely to witness buying interest. The immediate support for Nifty is placed in the range of 17600-17550 and traders should look for buying opportunities on declines towards the support range. On the flipside, the 38.2 percent retracement of the recent correction from all-time high of 18888 to 17255 is around 17880 which would be the immediate level to expect. However, if the trend continues based on global cues, then in the near term the index could see an upmove towards the 50 percent retracement mark which is placed around 18070. 

 

 Short covering by FII’s led to pullback in indices, PSU index hits all-time high

 

Nifty Outlook Graph

 

In last couple of trading sessions, we have seen broader market participation which is a positive sign. The Banking space is continuing to lead from the recent lows while the Nifty PSE index rallied to mark a new record indicating buying interest in the PSU names too.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17610

41050

Support 2

17550

40890

Resistance 1

17800

41670

Resistance 2

17880

41980

How do you rate this article?

Characters remaining (1500)

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

FREE Trading & Demat Account
Resend OTP
Resend OTP
''
''
Please Enter OTP
By proceeding, you agree T&C*
Mobile No. belongs to

Market Outlook Related Articles

Market Outlook for 24 May 2024

by Ruchit Jain 24th May 2024

Market Outlook for 23 May 2024

by Ruchit Jain 23rd May 2024

Market Outlook for 22 May 2024

by Ruchit Jain 22nd May 2024

Want to Use 5paisa
Trading App?