Nifty Outlook for 31 Mar 2023

Ruchit Jain Ruchit Jain

Last Updated: 3rd April 2023 - 04:03 pm

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Nifty traded in a narrow range for most part of the session on the March series expiry day. However, the last hour buying resulted in an upmove in the indices and Nifty ended the day tad below 17100 with gains of three-fourth of a percent; while the Bank Nifty index ended tad below 40000 mark.

Nifty Today:

 

It was a typical expiry day wherein the Nifty traded around the 17000 mark for most of the day as the 17000 strike price options had seen significant build up in the last two trading sessions. Then we witnessed a positive momentum in last half an hour which led to a positive close on the indices. The broader markets witnessed a decent upmove in Wednesday’s session post the sharp down move seen in last few sessions. This was much required as many cash segment stocks had seen sharp correction and were in oversold zone as per the RSI readings. Now Nifty has been able to hold its support of 16900-16850 support zone so far and has consolidated in a range in last couple of weeks. However, the resistance end of the range at 17200 will be a crucial level and the index needs to surpass that hurdle for any short term positivity. Thus, a breakout beyond the range of 17200-16850 will lead to the next directional move in the short term. Traders are advised to focus on stock specific strategies at the momentum and trade in the index in the direction of the breakout.

 

Nifty recovers on expiry day, buying interest seen in midcap stocks

 

Nifty Outlook Graph

 

For Bank Nifty, 40200 is the resistance end of the recent consolidation phase. In last couple of sessions, the banking index has shown a relative outperformance. A breakout above 40200 could then lead to a decent buying interest in the banking stocks in the short term.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

16970

39660

Support 2

16860

39400

Resistance 1

17160

40100

Resistance 2

17240

40300

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