NIFTY on 03-03-2023
Following the Positive Global cues NIFTY began the day in green with a gap up opening and marched north with all its strength.
Under the Leadership of METAL and BANK (3.55% and 2.13%) the Index saw buying in all sectoral indices and consequently broke the barrier of 17500 during the first hour of trading session and marched towards the next destination of 17600 which holds a strong resistance for NIFTY.
NIFTY closed at 17594.35 after making a day high of 17644 with a gain of 1.57% making a strong Bullish candle on daily chart.
Technical View: (DAILY CHART)
NIFTY has made a strong Bullish candle which in general indicates the probability of further buying.
Presently NIFTY EMA34>EMA21>EMA13 which can be inferred as the intactness of negative trend.
RSI is above 40 and below 50 levels which could be interpreted as: Index is not in strong momentum on either of the sides.
Support and Resistance: DAILY CHART
17527-17478 will hold strong support for NIFTY during tomorrow’s session. On the upper side 17731-17780 will hold resistance for NIFTY.
Sectoral View: (WEEKLY CHART)
On sectoral front IT and PHARMA look weak while AUTO, METAL and OIL&GAS are signalling the positive reversal from current levels.
Profit booking may be observed in BANK at higher levels and PSU BANK looks strong where Buy on dips seems to be lucrative.
View for Traders:
Being a trader, there are three questions which may strike at this point of time:
• Will the rally continue?
• Will Index break the crucial level of 17800?
• Will Index reclaim the important psychological level of 18000?
Answering these questions by keeping the Friday’s one sided rally in view may mislead the trader.
In my view, the answer to all three questions is No.
Why I am saying this?
1. Despite the positive global cues, Data of FIIs is not inspiring.
2. The technical indicators are signalling that Index is till in the consolidation zone and the same is reflected by the Options chain analysis.
3. Also, 17825-900 is a congestion zone and it doesn’t seem possible to break this level under present circumstances.
4. As far as the sentiments are concerned, this also remains neutral as the fear of recession is not over yet.
5. The Fibonacci retracement levels indicate that Index may make the high of 17800.
So, the decisive factors do not seem to be enough powerful to pull the Index higher in upcoming trading sessions.
Let us come to the most vital question, what should traders do today?
The data and the other factors are indicating towards a volatile session today where traders will get chances at both the ends.
Sell NIFTY (For fresh entry)/ Book Profit ( for the traders holding the position) in the range of 17775-800 for Target of 17650-600. SL may be kept at 17850 closing basis.
Buy NIFTY in the range of 17625-600 for target of 17700-725. SL may be kept below 17575 on closing basis.
Following the Positive Global cues NIFTY began the day in green with a gap up opening and marched north with all its strength.
Under the Leadership of METAL and BANK (3.55% and 2.13%) the Index saw buying in all sectoral indices and consequently broke the barrier of 17500 during the first hour of trading session and marched towards the next destination of 17600 which holds a strong resistance for NIFTY.
NIFTY closed at 17594.35 after making a day high of 17644 with a gain of 1.57% making a strong Bullish candle on daily chart.
Technical View: (DAILY CHART)
NIFTY has made a strong Bullish candle which in general indicates the probability of further buying.
Presently NIFTY EMA34>EMA21>EMA13 which can be inferred as the intactness of negative trend.
RSI is above 40 and below 50 levels which could be interpreted as: Index is not in strong momentum on either of the sides.
Support and Resistance: DAILY CHART
17527-17478 will hold strong support for NIFTY during tomorrow’s session. On the upper side 17731-17780 will hold resistance for NIFTY.
Sectoral View: (WEEKLY CHART)
On sectoral front IT and PHARMA look weak while AUTO, METAL and OIL&GAS are signalling the positive reversal from current levels.
Profit booking may be observed in BANK at higher levels and PSU BANK looks strong where Buy on dips seems to be lucrative.
View for Traders:
Being a trader, there are three questions which may strike at this point of time:
• Will the rally continue?
• Will Index break the crucial level of 17800?
• Will Index reclaim the important psychological level of 18000?
Answering these questions by keeping the Friday’s one sided rally in view may mislead the trader.
In my view, the answer to all three questions is No.
Why I am saying this?
1. Despite the positive global cues, Data of FIIs is not inspiring.
2. The technical indicators are signalling that Index is till in the consolidation zone and the same is reflected by the Options chain analysis.
3. Also, 17825-900 is a congestion zone and it doesn’t seem possible to break this level under present circumstances.
4. As far as the sentiments are concerned, this also remains neutral as the fear of recession is not over yet.
5. The Fibonacci retracement levels indicate that Index may make the high of 17800.
So, the decisive factors do not seem to be enough powerful to pull the Index higher in upcoming trading sessions.
Let us come to the most vital question, what should traders do today?
The data and the other factors are indicating towards a volatile session today where traders will get chances at both the ends.
Sell NIFTY (For fresh entry)/ Book Profit ( for the traders holding the position) in the range of 17775-800 for Target of 17650-600. SL may be kept at 17850 closing basis.
Buy NIFTY in the range of 17625-600 for target of 17700-725. SL may be kept below 17575 on closing basis.