March 22, 2023 – Market Overview

Hello reader, hope you’re doing well. With the recent upside seen in Asian markets, it’s expected for our markets to open gap up, which has happened, and now we can see the gap being filled, as concerns about the global banking sector diminish. However, there may be some stagnant movement before the US Federal Reserve announces its policy decision later in the day. Many anticipate Chairman Jerome Powell to raise the key rate by 25 basis points, bringing it to a range of 4.75-5%. However, the SVB crisis has created uncertainties regarding the Fed’s future policy direction.

Important points to note:

• Nifty is expected to face significant resistance at 17200 levels, which also has the highest OI concentration on the CE side.
• First step for a trend change on Nifty requires it to trade above 17300 levels, post which 17700-800 zone must be crossed and sustained comfortably above the same.
• Banknifty is also at its previous breakdown level of 40000, which will act as a short term resistance, along with the 200-EMA being at the same level.
• PSU bank index at the levels of previous breakout, in the form of a retest, can give a neat bounce from here. SBIN and CANBK are two strong stocks to watch out for the short term.

An important quote to remember for today is the one by Francis Bacon – This why people don’t want to hear discomforting views or face discomforting evidence. This is also why people don’t want to hear anything bad about their favourite stock in the portfolio or real estate investments.

As always, risk management is key, and a proper system in place prevents one from losing out too much, in case of outlier events. Have a good trading day, and may the force be with you!

Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.