Traders Guide: The Indian markets resumed the corrective tone after a pause for a week and shed over a percent. The bias was positive in the initial sessions however weak global cues viz. lingering fear of sharp rate hikes by the US Fed and fresh turmoil in the US banking space turned the tone completely in the final sessions.

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On Friday, the benchmark indices – Nifty and Sensex – ended closer to the week’s low at 17,412 and 59,135 levels. Most sectoral indices ended lower wherein banking, financials and IT majors faced pressure. Meanwhile, the resilience in the broader indices helped the traders to some extent.

Here is a list of things to watch out for on March 13, 2023

What should investors do on Monday?

With a fresh breakdown in the US markets, we expect the negative tone to continue. In case of any rebound, participants can look for shorting opportunities around the 17,600 zone.

While most of the sectors are trading in line with the benchmark, the performance of banking and financials would continue to play a key role in deciding the next directional move. Meanwhile, stay focused on stock selection and risk management.

- Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Also Read: Market Next Week: Inflation data, global cues, FII flows among other top factors for Dalal Street

Technical Outlook

Technically, the Nifty has moved below its 200-DMA, although the previous swing low of 17255 continues to be a key support level. If Nifty is able to hold this level, a bounce back is likely, with key resistance levels around 17650 and 17800. While if the Nifty drops below the 17255 mark, we can anticipate more declines till 16800.

Even though Banknifty has moved away from its 50-DMA, support levels of 40400, 40000, and 39500 still exist. A key resistance area on the upswing is between 41500 and 42000.

If we examine the derivative data, the put call ratio has dropped to 0.89 and the short exposure of FIIs to index futures has once more increased to 84%, which is reviving the possibility of a short covering rebound. But, for any significant short-covering rise, the market needs a strong bullish catalyst.

- Santosh Meena, Head of Research, Swastika Investmart Ltd.

Key support & resistance levels for Nifty50:

The Nifty50 closed 1 per cent lower at 17,412.90. Key Pivot points (Fibonacci) support for the index is placed at 17347.64, 17317.63, and 17269.04 while resistance is placed at 17444.82, 17474.84, and 17523.43.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 1.87 per cent lower at 39,909.40. Key Pivot points (Fibonacci) support for the index is placed at 40365.4, 40248.04, and 40058.07, while resistance is placed at 40745.34, 40862.7, and 41052.67.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Foreign portfolio investors (FPIs) remained net sellers for Rs 2061.47 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1350.13 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Bodhi Tree Multimedia Ltd: Niraj Rajnikant Shah bought 1,25,000 equity shares in the company at the weighted average price Rs 171 per share on the NSE, the bulk deals data showed.

SP Apparels Limited: NV Investments bought 1,60,000 equity shares in the company at the weighted average price Rs 341.98 per share on the NSE, the bulk deals data showed.

Tembo Global Ind Ltd: Gaurang Jitendra Parekh sold 60,842 equity shares in the company at the weighted average price Rs 162.98 per share on the NSE, the bulk deals data showed.

VLS Finance Ltd: VLS Finance Limited bought 2,23,025 equity shares in the company at the weighted average price Rs 176.61 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

Balrampur Chini, GNFC are placed under the F&O ban for Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With PTI Inputs