The Nifty index appears to be exhibiting an oversold disposition over the near-term, according to charts. A thorough analysis of the temporal trend indicates an imminent pullback. Traders should exercise prudence and seize any opportunities to buy the index on dips, as technical oscillators like Stochastic and RSI allude to the oversold zone. The downside support levels are expected to materialize around 16,800, with subsequent support levels situated around 16,600-16,225 if breached. Conversely, if the index exceeds the resistance level of 17,325, the subsequent resistance levels are anticipated to manifest around 17,550-17,900.
Weekly No Trade Zone: 17,264 – 16,936
Weekly Resistance Levels: 17,364 – 17,464 – 17,525
Weekly Support Levels: 16,790 – 16,680 – 16,481
Nifty Bank Index: Bulls’ Last Hope at 38,165
Charts suggest that the bulls’ last hope for the Nifty Bank index lies at 38,165. A close below this level may trigger a downside move, potentially opening doors for 38,200-35,700. Traders are advised to exercise prudence and caution, waiting for the correction to be complete. The forthcoming Federal Reserve decision, scheduled for March 22, 2023, is also expected to impact market volatility, necessitating a careful approach.
Weekly No Trade Zone: 40,081 – 39,100
Weekly Resistance Levels: 40,649 – 40,881 – 41,700
Weekly Support Levels: 38,581 – 38,316 – 37,549
In conclusion, traders should keep a close eye on the support and resistance levels mentioned above and be prepared for potential market volatility in the near term. The Nifty index and Nifty Bank index appear to be exhibiting signs of an impending pullback, making it crucial to exercise prudence and caution when making trading decisions.
