
March 17, 2023
www.angelone.in
Technical & Derivatives Report
The Bank Nifty had a subdued beginning on the day of the weekly
expiry, and the recent unease in the market caused prices to dip to
38613 during the day. However, there was a sharp rebound that
helped to recoup the early losses, and prices remained in a range
for the rest of the day, ultimately closing with a 0.21% gain at
39133.
This marks an end to the five consecutive days of losses. There is
now positive divergence, with prices hitting a new low, but RSI not
following suit. Additionally, the "Long Legged Doji" candlestick
pattern seen yesterday suggests that bulls are showing some
resilience at lower levels. However, the market is not yet
completely stable, and prices must continue to sustain above
yesterday's high of 39400 in the coming sessions, and close above
39950 to confirm a higher top on the hourly charts. Conversely, the
low seen yesterday around 38600 - 38500 is a critical level to
watch. Traders are advised to monitor these levels closely and take
things one step at a time.
Key Levels
Support 1 – 38600 Resistance 1 – 39400
Support 2 – 38500 Resistance 2 – 39900
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
The Indian equity market had a volatile day of trade, wherein the
benchmark index Nifty50 started on a bleak note and slipped to the
low of 16850. But soon after, some resurgence was seen at the
lower grounds, which led to a modest recovery and the index
snapped its losing streak. Amidst the intense tug of war, the Nifty50
index concluded the weekly expiry session on a subdued note, with
mere gains of 0.08 percent and settled a tad below the 17000 mark.
Technically speaking, there is no significant change in the view as
the index is placed near the previous day’s close. However, with the
formation of a ‘long-legged Doji’ on the daily chart, one may
interpret a halt from the ongoing sell-off, which is an encouraging
sign for the market participants. As far as levels are concerned,
16900-16850 is expected to act as the sacrosanct support in the
near period. On the higher end, 17200-17250 is likely to act as an
immediate hurdle, followed by the sturdy wall of 200 SMA, placed
around 17400-17450 in a comparable period.
As we advance, one needs to keep close track of the strongly
beaten-up heavyweight counters, as they could witness some
recovery from hereon. Besides this, global development should
also be tracked closely, as any favorable cues could boost market
sentiments. Also, we would advocate traders to avoid aggressive
bets for the time being and focus on stock-specific actions.
Key Levels
Support 1 – 16900 Resistance 1 – 17150
Support 2 – 16850 Resistance 2 – 17200