Nifty, Bank Nifty outlook: Key factors and levels to watch this week
Premium- Stock Market next week: Bulls have to take Nifty above the 17000 level to come back aggressively in the game.
Indian equity markets rebound after a continuous fall for four weeks thanks to some positive news flows on the Russia-Ukraine standoff, BJP victory in four states, cool off in crude oil prices, and selling exhaustion. There are still uncertainties on the Russia-Ukraine issue while we will have an important FOMC meeting outcome on 16th March amid hyperinflation.
Amid all, crude oil prices and FIIs' behavior will be important triggers to drive the Indian market in a truncated week. On the domestic front, we will have our inflation numbers that will be announced on 14th March.
If we talk about the derivative data then FIIs' long exposure in the index future stands at 43% which is still in negative territory whereas the put-call ratio has improved to 1.03 level. If we look at the OI distribution chart then 17000 is looking a crucial hurdle.
Technically, Nifty witnessed a smart pullback from the 16700 level and witnessed bullish engulfing candlestick formation on the weekly chart that is a positive sign. However, 16800-17000 is a critical supply zone because it is a cluster of 20 and 200-DMA.
Bulls have to take Nifty above the 17000 level to come back aggressively in the game. Otherwise there is a risk that bears may again become active where 16300-16250 will be an immediate and critical support zone then1 6000-15500 will be the next support area.
Bank Nifty also witnessed a smart pullback. However, 35500/36000/36500 are important resistance levels and it has to cross 36500 level for any meaningful reversal. On the downside, 34000 is an immediate support level while 33000-32500 is the next support area.
Santosh Meena is head of research at Swastika Investmart Ltd.
MINT PREMIUM See All
Never miss a story! Stay connected and informed with Mint. Download our App Now!!