Weekly Market Outlook for 27 Mar to 31 Mar

Weekly Market Outlook for 27 Mar to 31 Mar

by Ruchit Jain Last Updated: Mar 27, 2023 - 10:40 am 766 Views
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In the week gone by, Nifty recovered from its support zone of 16850-16900 at the start of the week. But the pullback move witnessed resistance around 17200 and the index resumed its correction towards the end of the week and closed below 17000 with a weekly loss of about a percent.

 

Nifty Today:

 

Amidst all the important global news flows, our markets consolidated within a range in the last one week where a pullback move was seen from its support zone of 16850-16800. However, the index did not witness any significant buying interest and the pullback resistance around 17200 and we saw selling pressure again towards the end. Thus, 17200 now becomes an important hurdle for the coming week and until the index surpasses the same, the short term trend will continue to be sideways to negative. FIIs have formed record short positions in the index futures (mostly in Nifty Futures) with about 90 percent of positions on the short side while the Clients sections (retail traders and HNIs) have significant long positions with ‘Long Short Ratio’ around 61 percent. Now we have not seen unwinding of positions from either side so far which has led to a range bound market. However, with the month expiry nearing, we may see unwinding of positions which could lead to some higher volatility in the coming week.

 

Nifty witnessed selling pressure on pullback move, 17200 becomes near term hurdle

 

Weekly Market Outlook Graph

 

As far as levels are concerned, 17200 will be seen as crucial resistance and a breakout above the same will turn the near term momentum positive. However, till market traders below this hurdle, bears would be in control and 16850 followed by 16750 will be the immediate supports in the downmove. Traders are advised to avoid aggressive bets until the index surpasses the above hurdle. For the Bank Nifty index, the ’20 DEMA’ at 40200 is the resistance level to watch.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

16850

38950

Support 2

16750

38600

Resistance 1

17100

39800

Resistance 2

17225

40200

 

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

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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.
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