Nifty And Nifty Bank Rallied Higher, Heading Towards The Resistance Level

NIFTY:

The NIFTY opened at 17060.40 with a gap up of 72 points. The index initially moved down, filling the gap but soon found support and started a consolidation process. Prices have recorded its intraday low at 17016 and saw a breakout in the afternoon. The index started moving higher and crossed above 17100 to record its intraday high at 17127.70. The NIFTY finally closed at 17107.50 near its day’s highs with a gain of 119.10 points or 0.70% up. BANK FINANCIAL, MEDIA, and OIL GAS outperformed today and closed with a gain of over 1% IT, FMCG, PHARMA, and REALTY underperformed today and closed with a loss. As mentioned yesterday, the market is now awaiting the outcome of the FED meeting which is scheduled for tomorrow and we will see its effect on Indian markets the next day which is also the weekly expiry day. The short-term trend is down. We have mentioned a narrow trading range with support around 16850 and resistance around 17200. This range remained intact and prices have been moving within this range for the past six trading days. As far as the index is trading within this range, we should prefer trading only on an intraday basis. For the time being, we should step aside from taking carry-forward trades.

BANK NIFTY:

The BANK NIFTY opened at 39599.65 with a gap up of 227 points. The index could not sustain there and initially moved lower. Prices soon found support and bounced up after recording its intraday low at 39366.30. The index first consolidated and then broke higher to rally towards 40000 marks. The index recorded its intraday high at 39970.90 and finally closed at 39867.50 with a gain of 495 points, PSU and PVT BANK both indices have performed almost the same , saw a sharp intraday rally and closed higher by 1.65% & 1.44% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while FEDERAL BANK contributed the lowest. BANK NIFTY moved very volatile. After a gap up opening, the momentum become weak in the morning but as the day progressed, the index rallied higher sharply. As mentioned, support is visible around 38500 while resistance is around 40000. The index has bounced up from the support zone and is now trading near the resistance level. The trend is still down. We should wait for a close beyond 38500-40000 range. We should avoid taking carry-forward trade as far as the index is trading within these two levels and shift our focus to intraday trading only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Federal Fiscal Deficit (Feb) 31st March, 2023 INR: Infrastructure Output (YoY) (Feb) 31st March, 2023	USD: Fed Interest Rate Decision on 22nd March, 2023 USD: New Home Sales (Feb) on 23rd March, 2023

NEWS UPDATES

• Benchmark indices ended on positive note on March 21 with Nifty above 17,100. The Sensex was up 445.73 points or 0.77% at 58,074.68, and the Nifty was up 119.10 points or 0.70% at 17,107.50. About 1923 shares advanced, 1487 shares declined, and 134 shares unchanged.

• El Niño disruption to food prices may affect inflation control: Fitch Ratings Certainly, if we see disruptions and upward pressure from food prices, that could add to some challenges on the inflation front. Rural economy is quite a volatile part of the economic story and quite dependent on the monsoons.

• Zydus Lifesciences Ltd on Tuesday said the US health regulator has granted ‘Orphan Drug Designation’ to its ‘ZYIL1’ for the treatment of patients with auto-inflammatory condition cryopyrin-associated periodic syndrome (CAPS).

• Gold prices have hit a lifetime high in India, Australia, and the UK, while they’re at an 11-month high in the US. The crises at SVB, Signature Bank, and Credit Suisse are making investors turn to gold as a safe-haven asset.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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