Nifty Outlook 3 Mar 2023

The benchmark index opened in the red on Thursday amid weak global cues and continued the fall on the weekly expiry day. The nifty50 dragged more than 100 points to settle at 17321.90 while Bank nifty went down by 0.88% to close at 40389.80 for the day. 

Nifty Today:

After the positive moves on Wednesday the session, the market participants were hoping for an upward move on the day of expiry but the market had disappointed traders and settled below the prior low. Which indicates further weakness for the coming day. On the sectoral front, Nifty IT, FINANCE, AUTO & METAL were the prime laggards while Nifty REALTY & ENERGY were the contributors. The top Nifty 50 stocks were AMBUJACEMENT, ADANIPORTS & BHEL, which added more than 3% gains while, top losers were MARUTI & AXISBANK the shed 2% each, followed by TCS, INFY & SBILIFE. 

On the option front, the highest call OI is at 17400 strike price, followed by 17500 and 18000. While the highest Put OI is also at 17400 strike price, followed by 17300 & 17000 levels. So the maximum pain or tough fight between a bull & bear at 17400. 

Technically, the nifty 50 index has been trading near the trend line support zone and lower Bollinger band formation. However, the index is trading below all the important moving averages but the momentum indicator RSI is near the oversold territory on the daily chart. The index had breached the prior day's low and closed below it but, on the downside, still holding the support around 17250 levels. While Banknifty has managed to settle near the prior close and also retested the prior consolidation breakout zone around 40371 levels and 9 days SMA on the daily scale. 
 

             Nifty continues correction amid weak global cues

Hence, traders are advised to keep watch on the global cues, Dollar index movement and FII flow in the market. For the coming day, the Nifty has support at around 17250/17150 levels, while on the upside, it may find resistance around 17470 & 17600 levels.  

Nifty & Bank Nifty Levels:

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