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Sensex (59500) / Nifty (17649)

The Indian equity market has witnessed some strong whipsaw moves at the start of the eventful week, wherein the benchmark index Nifty50 had a decent start followed by a gradual correction. However, in the latter half, a strong recovery was seen from the lows of the 17400-odd zone and levitated the market sentiments and snapped the losing streak. The Nifty50 index concluded the day with mere gains of 0.25 percent and settled around 17650 level.

Amidst the rise in volatility in the market, bulls managed to withhold the pivotal support of 17500 and showed their resilience post two sessions of carnage. We are still not out of the woods and awaiting some positive triggers to have a modest recovery and enter a positive trajectory. On the technical front, 17500 holds the crucial support zone, followed by the immediate swing low of 17400. On the flip side, 17800 is expected to act as the stiff resistance, followed by the 18000 mark in the comparable period.

The broader market remained tentative, while the IT space has seen some strong resurgence and led participants engaged for the day. All eyes would be on the Adani group developments, followed by the mega event of the ‘Budget 2023’ and till we do not witness some strength in the indices, it is advisable to stay light and have a stock-centric approach.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook (40387)

We had a nervous start to the week, however, after the initial dip there was a strong bounce within a few minutes. Subsequently, the volatility was on the higher side as prices once again slipped below the morning lows, only to recover back in the second half and end flat a tad below 40400.

Going by yesterday's trend we can see a mixed bag of pictures, as uncertainty prevails within the Adani space that has dampened the sentiments whereas prices have reached lucrative levels ahead of Budget after the recent fall. We sense that this tug-of-war between bulls and bearsis likely to continue but instead of swaying with the market moves, we suggest traders should consider one primary trend and use the dips to enter good quality stocks. Aggressive bets should be avoided as long the trend gets clear and one needs to be very selective. As far as levels are concerned, immediate support is seen around 40000 - 39800 whereas 40800 - 41000 is the immediate resistance.

Exhibit 2: Nifty Bank Daily Chart

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