
March 16, 2023
www.angelone.in
Technical & Derivatives Report
The banking index also had a gap-up start but failed to sustain at
higher levels and gradually plunged throughout the day to slip
below the 200 SMA. The Bank Nifty index corrected for the fifth
straight session and settled a tad above the 39000 mark with a cut
of nearly a percent.
On the technical aspect, the index has made a strong bearish
candle on the daily chart and has plunged below the 200 SMA,
indicating intense selling pressure in the overall space. The recent
development has shaken the chart structure in the intermediate
period. However, the index has slipped way below into the
oversold territory, and one should avoid fresh shorts for the time
being. As far as levels are concerned, 38800-38600 is likely to
cushion any further blip. While on the higher end, 39600 is likely to
act as resistance, followed by the 39800-40000 zone in the
comparable period. Hence, one needs to keep a close tab on the
mentioned levels and avoid aggressive trade in the index for the
time being.
Key Levels
Support 1 – 38800 Resistance 1 – 39800
Support 2 – 38600 Resistance 2 – 40000
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
The positive development in the overseas market led to a promising
start to our Indian market, wherein the benchmark index had a
decent gap up opening. But soon after the opening bell, the index
gradually slipped to test the previous days’ closure, trimming down
all the initial gains and sentiments. Also, by the fag end, the sell-off
aggravated which plunged the index into the negative terrain to
slide below the psychological mark of 17000. With no respite from
the sell-off, Nifty continued its down run for the fifth consecutive
session and settled a tad below the 17000 mark, shedding 0.42
percent.
Technically, the bulls failed to capitalize on the heads-up move and
the lack of buying emergence led the market to slip to lower levels,
signifying a strong sense of tentativeness among participants. The
decisive breach of the 17000 mark undoubtedly dented the
sentiments, but as we allude to our previous commentary, the
16900-17000 odd zone is expected to cushion the fall. And we
remain hopeful till the market withholds the range. On the higher
end, 17200-17250 is expected to act as an immediate hurdle,
followed by the sturdy wall of 200 SMA, placed around 17400-
17450 in a comparable period.
Considering the price action, our market looks bleak but at the
same time a bit oversold too. We advocate not to comply with
the ongoing sell-off and wait for some positive triggers to levitate
the markets. Meanwhile, one should keep a close tab on the
mentioned levels and avoid aggressive bets for the time being.
Simultaneously, stay abreast with global developments.
Key Levels
Support 1 – 16900 Resistance 1 – 17200
Support 2 – 16800 Resistance 2 – 17250