Market completely wiped off the gains and ended lower on the first week of the calendar Year 2023. Nifty’s failed to surpass the sturdy wall of 18250—-18300 has eventually lead to drop below the 18000 levels and, closes the week around 17859.45 (Spot levels) down almost 1.50% (On weekly basis)
While looking at the technical picture on the daily time-frame chart the structure looks kind of bearish.
As far as derivate data is considered, the Nifty index Put Call Ratio is around 0.75 which has decreased from 0.88 on weekly basis. The Maximum Pain is around 17,950 level and the open interest of the Nifty Futures increased by 11.19%.
FII’s have continued their selling streak, and they sold almost ₹ 7813 crores, while DII’s have bought ₹ 2,756.58 crores during the week.
Nifty (Spot Levels)
Now as far as support levels are concerned on the downside, 17750 will be the first support level to watch out, if any further bearish move happens below this level then the level of 17500 will act as a crucial support to watch out.
On the flip side, in order to regain the strength the index must reclaim 18000 level, and close above this will decide the further upside momentum.
The major upside trend deciding level remains the 18300, which would turn the tide once again in the favour of bulls.
Bank Nifty (Spot Levels)
Looking at the Bank Nifty’s level, 43000 would be the crucial level to watch out, sustain above this will lead to upside move towards 43500—-43800. Fresh upside move can only be seen above the 44000 levels.
Downside crucial support to watch out for the Bank Nifty index is around 42000 and 41500 level, for the coming week ahead.
- Some positivity has come from the Nifty Midcap 50 Index which remained firm and did not participate in the previous weeks bearish move.
- For coming week, if the markets rebound from lower levels then we may see that Nifty Midcap 50 index will outperform the major indices.
- Important event for the coming Monday is that we have result season kicking in. Major focus will be on the major IT heavyweight stocks. The result outcomes will also decide the near term direction of the Nifty IT index. TCS is going to publish it’s quarterly result on Monday.
In the coming week, traders are advised to take calculated risk and be very selective in their trades.
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Team Indian Market View