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Technical Outlook

Equity benchmarks extended losses over second consecutive week tracking elevated global volatility triggered by concerns over financial stress in banks. Nifty closed the week at 17100 levels down 1.8%. In the coming session, index is likely to open on a negative note tracking subdued global cues. Post initial blip, we expect supportive efforts to emerge around Friday’s low of 17000. Hence, use intraday dips towards 16995-17027 to create intraday long positions for target of 17114 with a stoploss of 16959

The index has approached key support of 16800 amid oversold conditions. Further, it has witnessed a follow through to Thursday’s Doji like candle at the key support of 16800, indicating abating downward momentum. In the upcoming eventful week, volatility would remain high wherein we expect extended correction to get arrested around key support zone of 16800 while sustainability above immediate hurdle of 17200 would pave way for a meaningful pull back towards 17600 by the end of March 2023, as it is confluence of 200 days EMA coincided with current week’s high. Thus, traders should refrain from creating aggressive short positions.

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