Nifty view for the month of march 2023
Hello friends, and welcome to our new video part of the Market View series. In last week’s market view, we had cautioned our viewers about not getting carried away by the bounce in the markets & highlighted a possibility of Nifty meeting with selling pressure at higher levels because of multiple signals like, trading at the higher end of the channel, resistance caused by a gap down in prices around 18,000 & also because of the 50-day Exponential Moving Average (EMA) at those levels .
If you missed last week’s video, we would recommend you check that out first. The link to last week’s Market View is in the description below.
Last week, our forecast indicated a possibility of Nifty staying in a range of 17,300 on the downside & 18,000/18,500 on the upside. Nifty pretty much stayed inside this range throughout the week. Quite significantly, the low that we made today was 17,324 post the gap down before recovering to close at 17,412.
Going into the next week, the view does not change as much. The monthly and weekly trend in the Nifty 50 Index continued to be sideways & despite of all the volatility that we observed, Nifty still continues to trade around the support levels. Directional bias in the markets won’t be seen, as long as Nifty stays in this range. On the daily time frame chart, Nifty closed with a Hammer candlestick.
Normally, a hammer would be a bullish reversal signal & suggest a possible upside. However, in this case there are two things that go against this traditional belief. Number one, this bullish hammer, is red in colour, which suggests that although bulls gave a strong fight back, they were not able close prices above the open. And number two, this hammer comes after a gap down in prices. The gap down offers a very strong resistance. Thus any rally caused by this hammer can quickly meet with some selling pressure around the 17,500-17,600 levels. For the upcoming week, we believe 17,600 & 17,800 would be potential hurdles resistance, whereas 17,200 & 17,000 would be potential supports. As mentioned earlier, we would only take a directional bias if either of this range breaks.
So what should Traders do?
Traders should play the range! A move towards 17,600 should be seen as a possible selling opportunity based on the evidence of bearish candlestick signals on the 15 or 30 minute charts, and a move towards 17,200 should be seen as a possible buying opportunity based on the evidence of bullish candlestick signals on the 15 or 30 minute charts.
Stocks to watch out for –à
Stocks expected to trade with a negative bias — Lalpath Lab & Polycab –
There is a strong downtrend on the daily & weekly charts of these respective stocks, combined with a huge build up of open interest.
Stocks expected to trade with a positive bias — Zydus Life
There is a strong uptrend on the daily & weekly charts, combined with a huge build up of open interest. A break above 481, will see the stock picking up strong momentum on the upside.
Thank you for watching today’s video! We hope you gained some valuable insights about the Markets from watching our videos.
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We will see you again next week with a fresh update on the overall markets and key levels to watch out for. Happy Trading!