Market Outlook for 15 March 2024

Our markets witnessed some recovery post the previous session's sharp sell-off. The Nifty Bank underperformed, but the IT heavyweights supported the pullback move and the Nifty ended the day at 22150 with gains of seven-tenths of a percent.

Nifty Today:

Post a sharp sell-off in the last three trading sessions, the midcap and the small cap stocks had oversold momentum set-ups and this led to a pullback move in the broader markets on Nifty’s weekly expiry day. Once again, the Nifty has taken support around its 40 DEMA which has acted as a sacrosanct in recent corrections. Thus, the last couple of sessions low would be seen as important support for the Nifty which if broken, then it will lead to further correction in the index. On the higher side, the retracement levels indicate resistance for the index around 22220 and 22290 levels. As of now, it is difficult to assess whether the worst is over just on the basis of one day's upmove. Hence, follow up moves will be important to see and thus traders are advised to stay cautious and prefer a stock specific approach. The IT stocks witnessed positive momentum where the RSI is on the verge of a positive crossover. Also certain other defensive names from the Pharma and the FMCG stocks are doing relatively well and hence, one should avoid high beta names and focus on stocks from these sectors until we see a confirmation of the resumption of broader market uptrend.

                                                     IT stocks leads modest to recovery in benchmark

Nifty, Bank Nifty Levels and  FINNIFTY Levels: