
March 10, 2023
www.angelone.in
Technical & Derivatives Report
Post Wednesday’s strong close, we began the weekly expiry
session above 41500 and saw follow-up buying to head towards
41650. However, like Monday’s session some tentativeness was
observed at higher levels which got aggravated as we progressed
to drag the banking index towards 41200. Eventually, we
concluded the day with a cut of 0.77% to the previous day’s close.
If we look back in the February series, specifically in the midst, the
banking index spent almost two weeks in the vicinity of 41000-
42000 and now it’s the third week wherein the index is hovering
around the same zone. Considering the broader picture, we have
managed to conclude the session above the support zone
of 41000-41200 and above the rising trendline support mentioned
in the previous commentary. Hence, as long we manage to sustain
above key supports, we would use such dips to add longs in the
market. On the upside, considering the recent price action, 41600-
41700 remains a sturdy wall followed by 42000. Traders are
advised to keep a close tab on the above-mentioned levels and
avoid any positional bearish trades.
Key Levels
Support 1 – 41100 Resistance 1 – 41600
Support 2 – 41000 Resistance 2 – 42000
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
Our markets witnessed a marginally positive opening, however right
from the word go prices started to slide lower forming an open high
kind of scenario. During the midst, there was a mild bounce back
that was inferior to the Bank Nifty. Eventually, this bounce as well
got sold into as one more round of profit booking resulted in Nifty
ending below 17600 with a loss of around nine-tenths of a percent.
It was a disappointing session for the bulls as, despite some recent
positive developments, the markets are lacking sustenance at
higher levels. The culprit remains heavyweights, as one or
the another from them continues to comfort in the back seat;
yesterday the major draggers were Reliance and Auto counters.
Nifty has now given up initial weekly gains and is now placed at a
neutral juncture. Going ahead, 17500 followed by 200SMA placed
at 17430 would be considered sacrosanct support and we remain
hopeful that buying will re-emerge at lower levels. However, since
we are not seeing follow-up buying traders need to avoid undue risk
and need to be very fussy in their stock selection.
Key Levels
Support 1 – 17500 Resistance 1 – 17700
Support 2 – 17430 Resistance 2 – 17800
On the flip side, the 61.8% retracement level (17800) that we
have been highlighting since the last couple of sessions remains
a stiff resistance, and for the trend to technically turn into
positive need to close above it with some authority; before that
17700 should also be considered as immediate resistance. The
banking space remains a key ray of hope for the bulls as the bank
index continues to show resilience and has been well sustained
above the recent bullish breakout levels. Also, one needs to
keep a tab on global developments as some positive
developments there could trigger optimism back in our markets.