Market will continue to be sideways for short-term
Last Updated: 27th March 2023 - 05:17 pm
In the last week, Nifty recovered from its support zone of 16850-16900 at the start of the week. But the pullback move witnessed resistance around 17200 and the index resumed its correction towards the end of the week and closed below 17000.
Amidst all the important global news flows, our markets consolidated within a range in the last week where a pullback move was seen from its support zone of 16850-16800. However, the index did not witness any significant buying interest and the pullback resistance around 17200 and we saw selling pressure again towards the end. Thus, 17200 now becomes an important hurdle for the coming week and until the index surpasses the same, the short-term trend will continue to be sideways to negative. FIIs have formed record short positions in the index futures (mostly in Nifty Futures) with about 90 percent of positions on the short side while the Clients sections (retail traders and HNIs) have significant long positions with a ‘Long Short Ratio’ of around 61 percent. Now we have not seen the unwinding of positions from either side so far which has led to a range-bound market. However, with the month expiry nearing, we may see the unwinding of positions which could lead to some higher volatility in the near term.
As far as levels are concerned, 17200 will be seen as crucial resistance and a breakout above the same will turn the near-term momentum positive. However, till market traders are below this hurdle, bears would be in control and 16850 followed by 16750 will be the immediate supports in the down-move. Traders are advised to avoid aggressive bets until the index surpasses the above hurdle. For the Bank Nifty index, the ’20 DEMA’ at 40200 is the resistance level to watch.
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