Nifty Outlook 17 Mar 2023

Nifty started the weekly expiry day on a flat note, but it witnessed a continuation of the selling pressure in the first hour and tested 16850 support. The index then recovered from the lows and it gradually entered positive territory. Amidst some volatility in the last hour, Nifty ended the day tad below 17000 with marginal gains.

Nifty Today:

Both Nifty ad Bank Nifty witnessed a recovery from the first hour lows in Thursday’s session, and ended with formation of a ‘Doji’ candlestick pattern on the daily chart. In Technical Analysis, this pattern indicates a tug-of-war between bulls and the bears with no directional result towards the end. The high and low of the pattern becomes important points for the following session and hence, 16850 will be seen as the crucial support while 17070 will be the resistance level. The overall trend remains negative but since the FII’s have short heavy positions and the index has approached its multiple support zone around 16850-16900, a pullback move could be there in the near term. However, a confirmation of the same required the above mentioned high to be taken out. On pullback moves, the resistance for Nifty will be seen around 17060 followed by 17175 while on the downside supports are placed around 16850 and 16750.

Indices forms ‘Doji’ candlestick pattern indicating pullback attempt

Traders should look for stock specific action for time being and avoid aggressive trades till the trend reversal confirmation is seen.

Nifty & Bank Nifty Levels:

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