March 10, 2023 / 02:31 PM IST
Santosh Meena, Head of Research, Swastika Investmart
:
Markets have taken a significant hit as a result of weak global cues. The US market was under pressure due to the decline in shares of SVB bank and cryptocurrency financier Silver Capital, particularly in stocks related to banking and finance. We lack direction and are currently under selling pressure at higher levels as a result of the extremely volatile global cues over a long period of time. The most recent issue is more US-specific, and there is only an sentimental influence on markets worldwide. Nevertheless, the market may stay volatile in the lead-up to US job data and US CPI figures next week.
Technically, Nifty has once again fallen beneath its 200-DMA, although the swing low from earlier this year at 17,255 will be a crucial support level. If Nifty is able to hold this level, the market can once more be expected to rebound, with 17,625 and 17,800 serving as significant resistance levels. But, Nifty may move near 16,800 if it drops below 17,255.
Bank Nifty has resistance near the 50-DMA of 41,650, but there are several support levels as well, including 40,400-40,000 and 39,500. If block deals aren’t included, FIIs are still in a sell mode, but their short positions in the index futures market have once more increased to 80 percent. Despite being oversold, the market is not experiencing any substantial short-covering rallies in absence of any positive trigger.
