Indian equity indices fell significantly in Friday’s trade ahead of the key Union Budget 2023 and US Federal Reserve interest rate decision scheduled for this week. The Nifty declined 1.6% or 287.60 points to 17,604.35 and the Sensex declined 1.45% or 874.16 points to 59,330.90. Indian equities ended lower on Friday, with Nifty shedding 1.3% and Nifty Mid Cap and Nifty Small Cap falling 1.5% and 1.2%, respectively, despite divergent cues from global markets. The worst loser, Nifty PSU Bank fell 3.6% followed by Nifty Bank down 2.5% and Nifty Private Bank down 2.3%. Analysts expect market volatility to intensify in the coming sessions, boosted by US monetary policy and US dollar trend as the Union Budget 2023 and the ongoing 3QFY23 earnings season are expected to impact the markets.
nifty outlook
Rajesh Palvia, Vice President, Technical & Derivative Research, Axis Securities said on the weekly chart, the index has formed a bearish candle which has engulfed its last week’s move forming a “bearish engulfing” candlestick formation, which is a bearish pattern. The index broke below four weeks of consolidation between 18300-17800 range.
The chart pattern suggests that if the index breaks below 17500 levels, it could see selling taking the index towards 17300-17100. However, if Nifty crosses 17800 levels and holds above, there will be buying, which will lead the index towards 18000-18200 levels. This week, we expect Nifty to trade in the range of 18200-17100 with a downside bias. The weekly strength indicator RSI is trending down and is quoting below its reference line, indicating a negative bias.
bank nifty outlook
On the weekly chart, Rajesh Palvia said, the index has formed a large bearish candle which has engulfed its last week’s move forming a “Bearish Engulfing” candlestick formation, which is a bearish pattern. The chart pattern suggests that if the index breaks below 40100 levels, it could see selling taking the index towards 39900-39600.
However, if Bank Nifty crosses 40500 level and sustains above, there will be buying, which will take the index towards 40800-41000 levels. This week, we expect Bank Nifty to trade in the range of 41000-39600 with a negative bias. The daily and weekly strength indicator RSI is bearish and remains below the 50 mark, further supporting the bearish sentiments.
Rajesh Palvia Stock Recommendations for the coming sessions
Rajesh Palvia of Axis Securities has a buy or sell recommendation on these stocks in the coming sessions.
1 ITC: Buy at 345, target price 360, stoploss 338
2. IndusIndbank: Sell the future of IndusIndbank 1120, target price 1080, stoploss 1155
3. BDL: Buy on 933, target price 980, StopLoss (SL) 910
4. Supremeind: Buy 2535, target price 2620, stoploss 2470
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint.
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